#1. The “Lunatic Fringe” is a reflection of his early upbringing
Wrestling is the most believable when the characters are believable. Today's wrestler is unlikely to convince anyone that they are actually a clown or a sanitation engineer. They need to have a character that is steeped in reality. In order for their characters to make a connection with the fans, in order to get them to cheer or jeer, there has to be something authentic about them.
While in FCW and then on the main roster, Ambrose initially appeared to be a character that didn't have much direction, making it hard for fans to either love or hate him. So when he began to take the risks that he takes now, whether it is his dives to the outside of the ring or attacking his opponents after coming through the crowd, he saw greater success because it was believable.
Cody Rhodes' uncle is a WWE Hall of Famer. More details HERE.
It demonstrated a daring attitude that is based in reality. As mentioned previously, being surrounded by crime and homelessness caused him to fight back. His rough exterior is a reflection of a tough life, as is the proverbial chip that he has on his shoulder each time he competes. Living in those conditions would surely drive anyone mad!