The I-C title has a rich history of being held by the company's best ring workers.
Honky Tonk was maybe the first exception to this trend, paving the way for other similar champions like Ultimate Warrior. He was a great "character." Could talk business into the building, but was never any kind of technician.
The fans loved (hating) his heel persona, though, and that kept him in a good spot for a decent stretch.
From what I've heard, it was the exact opposite. Honky was a great worker before he got to the WWF. Vince McMahon wanted to make him a babyface. But, much like the Rocky Maivia character, it didn't work. So, when they turned Honky heel, he got back to his roots.
And, the story goes that "The Natural" Butch Reed was supposed to be IC champion, after McMahon got enraged at Steamboat for asking for time off, after all the buildup to put him over Savage at WM3.
But, Reed showed up late (or no-showed). So, when the time came to get a heel to replace Reed, Hogan just happen to see Honky in the back and suggested he take Reed's place.
The rest is history. Honky was reported to be on top of the "B" loop of the WWF tours and drew lots of money. I guess that's what made Ultimate Warrior's win so wild at SummerSlam '88. People wondered if ANYBODY could take that blasted belt off Honky.
I'm glad he's finally getting into the Hall of Fame. All that's left, for me, is Demolition. They should be inducted instead of the Hart Foundation (Bret Hart is already in the HOF; Jim Neidhart hadn't done jack, especially after splitting from Bret).