#1 The Entire Year of 2006
Much of 2006 for WWE was like a failed throwback to the '90s. We had the reunion of Shawn Michaels and Triple H as D-Generation X, which was nowhre near as entertaining as their first run 9 years earlier. Back in 1997, DX was groundbreaking, pushing the envelope as far as possible. The two young guys were highly entertaining in their 18 TV rating antics, while in 2006, they were two 40 something-year-olds making toilet jokes, and they weren't very funny.
WWE also gave us that flop of an ECW revival, a pointless Kane vs. Fake Kane storyline, Rey Mysterio being booked very poorly as World Champion, the late Eddie Guerrero's name popping up in storyline, Kurt Angle parted ways with the company, and Vince McMahon beat God in a match, among other questionable and poor booking decisions.
And even though their ratings didn't match up to WWE, TNA Impact Wrestling was presenting pretty damn quality TV. The 'Icon' Sting had come out of retirement and joined the company, the previously most underused star in WWE, Christian, was a major main event player, and the company even managed to sign Kurt Angle. Joining these three, the TNA roster also consisted of such other talent as AJ Styles, Samoa Joe, Jeff Jarrett, the Dudley Boyz, Eric Young, Bobby Roode, Raven, Rhyno, Gail Kim, Alex Shelly, Chris Sabin, Jay Lethal, LAX, America's Most Wanted and many more. Even legends like Kevin Nash and Scott Steiner were contributing the company in very positive ways.
Storylines such as L.A.X, Jeff Jarrett vs. Sting, Kurt Angle's arrival and feud with Samoa Joe, Paparazzi Productions, and the rise of Christian Cage were all far superior to what WWE had to offer. Almost everything TNA did in 2006 was far better than what WWE was putting out. I think you could argue which company was better in 2007, 2008, 2009, and 2010, but 2006 belonged to TNA and should have been their launch to be WWE's equal.