The problem is that IWF will replicate the style of all the feds that have come before it. JBW, HWA, EWNCW, BWA etc. all use CAWS's only. The standard two, EWNCW and JBW, don't really have a gimmick to them but they were the original feds and have the largest support out of all the feds so far. The others have some sort of gimmick or schtick that makes them unique. BWA focuses on tag team wrestling and HWA ficuses on hardcore wrestling. Apparently, IWF already has problems with support from their members which is why this announcement was made to begin with. If IWF were to be all CAW's, then it would just be another EWNCW or JBW with a different name. Having an original gimmick makes feds more interesting and using real life wrestlers is the way to go IMO since no other fed had done it before and it would be an exclusive attraction you could only get at IWF.
I completely understand that argument, I wasn't trying to bash the fed by any means, and the way you put it makes complete sense. In that case I wouldn't find it bad to have just WWE Characters and legends.