Sorry, I just saw thread.
I must admit that I have not watched any current programming consistently for several years, now.
Having said that, I can tell you that there are some rather neat tricks to making punches look real. Perhaps my favorite is Terry Funk's subtlety and finesse. Terry never left any "wind" in his punches. He connected with everything with seemingly full force. I believe he would actually connect with his wrist, which substantially softened the blow without him pulling the delivery. Foley discussed this in his book.
I don't know if it's something he learned in Japan, or came up with on his own, but it looked great!!
Conversely, I remember watching Hogan deliver a series of working punches to King Kong Bundy in their Wrestlemania II match. Hulkster left a good 2 inches between his hand and Bundy's head during some of those blows, and it couldn't have fooled a half-witted toddler.