The only way to get legitimate heat from the crowds these days is to be seen as a real life backstage dickwad, and that's what they're doing with this storyline. Just look at the interest it has garnered amongst 'jaded' fans.
It's a decent segue from the absolute pits that is "happy to be here" phil to smarmy heel punk, which is the best thing he can do, and it sets up a good antagonist for future feuds, and that leads to the most important thing when it comes to wrestling and that is drawing dimes.
How could it not be a work?