It probably is a work, but one that is dictated by reality. Joe could barely move against Kross, so it's wiser to hold some sort of tournament with new, younger talent, than have him defend it against someone half his age.
He's great as an authority figure, but if in 2017 he was already gone, imagine 4 years later.
NXT gonna feel like that WCW episode in which everyone got their titles stripped.