I read the transcript and from the sound of it, it sounds like Cowherd just underestimated how large the wrestling fan base is. He clearly was never a wrestling fan and admitted to not knowing who Eddie was, but to the billions around the world who do like wrestling, he was a household name. I think EG's death is definitely a big story because there is a huge audience, bigger than Cowherd ever imagined.
I do watch wrestling, and have for many years. It beats the hell out of anything else that comes on TV during the weekdays. What some people don't understand is that they are not trying to sell their product as a scam for something real, it's entertainment. Vince McMahon would be the first person to tell you it's scripted and for pure entertainment only. Kinda like a regular TV show, except performed live in front of a national audience.