We probably are more likely to get the King's Court instead of Stud Stable if Lawler comes in with the chief advantage being Lawler could work at a higher level and genuinely could've been the best opponent Dustin could ever have (and probably give Dusty the best match he's had since 1987). You also no doubt have him in the booth for b-shows, and he probably transitions to commentary anyway similar to Larry Z only entertaining.
Failing that, there's absolutely something to Cactus/Lawler. Harley'd be a good manager for him, too, as it takes a king to know a king. You could probably have him and Orndorff as the grizzled cheating vet team really easily whenever you needed, piledriving locals and being a transition reign. The Badd feud makes sense, but I seriously don't see a lot of ways Lawler would put him over; I see Lawler not wanting to lose to a fruit like Badd in the south, but that's WCW, so it'd be bullshit finishes forever to some solid matches. Probably a good heel/heel Clash match with Regal is there somewhere, too, because there's no way Lawler gets over as a face for any prolonged period. He'll work Sting, for sure, but if I had to guess it would be when Rude couldn't. Fun matches. He'd also be a perfect first feud for Hawk when he comes back because that fucker would get a huge pop for the piledriver no sell every time.
1994, I don't see him advancing up the card at all. A Flair match definitely happens, a Bossman match happens, but that's it. More side stuff. He could've been the perfect WCW answer to Heenan if you think about it. Matches here and there where not a lot really gets high up the card, very similar to the WWF only he clicks WAY better in WCW. Feud with someone like Wright makes sense. IBeing one of the first to get toppled by Hogan and pals, although if he stays there's a great chance Savage gives him some great stuff (potentially even Starrcade) before sending him back down the card. If he gets Col. Parker's spot, of course, we get some magical stuff the next year with Sherri and Harlem Heat, too.
Lawler taking Larry Z's position as heel commentator is for the best, and yet another better option to turn and fight the Odor in 96.