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It was Funk's idea, literally on the spot.
>"Just put a mask on me and call me Chainsaw Charlie."
Besides, he appeared as himself in some segments and the whole getting tossed off the stage in a garbage bin lead to the feud with the New Age Outlaws and that lead to that gritty 8 man tag at No Way Out and then for the belts at Mania 14. Sure his intro out of the box was a fart, but he served his purpose. It was a dumb idea on Mick's part to suggest putting the world title on him in the middle of the Attitude Era, not Terry's.