Not a crackpot, but...
You came through the Usenet era, Bix, right? Something like that would have been posted in one of the Usenet binary groups... in fact, I seem to recall that by the late 90s there was a pro wrestling Usenet binary group. If it was on the P2P equivs in 1999 (he said within days of Owen dying), it likely would have gotten up there to either the PW binary one or one of the other groups. We can joke about The Board being the wrestling equiv of 4chan/one-of-the-various-chans... but old timers like us know that the chans haven't got dick on the incredible, sordid, sleazy, sickening, and often illegal cesspool a (massive) corner of the Usenet was.
Owen's death would have been close to the heyday of that wild wild west aspect of the Usenet, shortly before folks moved on: websites, then file sharing sites, and eventually to things like torrents. If it showed up there, some folks would have grabbed it (like he did) and circulated it.
If it showed up again in 2002 (as he says on ogrish.com), same thing.
His analogy to the nude pics is an interesting one, and I think we all know of stuff that was online at some point and since then all traces have vanished other than what we remember of them. But "Wrestler Dropping To His Death", which was covered by the mainstream media... that's not quite the same as Girl No One But Her Friends Know About. This isn't quite the type of thing that *everyone* who ever saw it would fail to save it... and fail to have it surface again some place.
I tend to agree with you: "some kind of fake obscured by the low quality of the video" is more likely.