You obviously weren't alive back in the 1980s. Or weren't paying attention.
You don't get what an impact MTV had on a generation and a culture then. Lauper was a big deal back then. Simply because everybody that had hit videos on MTV were a big deal back then. She wasn't my cup of tea (I was more of a heavy metal guy), but she was a big celebrity.
Celebrity news shows and magazines, and even regular news programs covered her feud in the WWF. Not as if it were real , but just the fact that she was participating in it.
They even made a Saturday morning cartoon based on the whole thing.
Of course, the WWF had to do other things to keep the momentum going, but the momentum had to start somewhere.
Heck, I never even heard of the WWF until that feud broke out.
Lauper was a roman candle, burning bright for just a little while, then flamed out quickly, but she was big briefly back when MTV was the Mecca of all things music (something it lost a long time ago).
It might be she isn't interested in being in their HoF. She seemed to turn away from it then, and never looked back.