There is a good point there though.
If you look at the LU creative staff, it's all former WWE writers. Chris DeJoseph, best known for playing "Big Dick Johnson," is the head writer of a Lucha Libre based program. That's just as ridiculous as it sounds.
They are accustomed to writing for one particular style of pro wrestling show, and don't have as much experience working in various promotions and territories like Konnan does, who's done it as both talent and as a booker. They also have no understanding of how to appeal to a Latino audience (which is the demographic that LU was originally intended to target), since they're all middle-age white men.
Another thing to consider, Konnan has mentioned how Vampiro and Chavo Guerrero, who serve as agents for LU in addition to being on-air talent, were trying to slow the matches down and have the talent work more of an Americanized style, while Konnan was trying to put more emphasis on doing straight-up Lucha Libre.
As for the characters from Season 2, Matanza didn't click as well as he should have for a few reasons. First off, Jeff Cobb was completely miscast for that character based on look and personality. The way Matanza was built up before his debut appearance, you were led to believe he would be an absolute mountain of a man. Meanwhile, Cobb isn't even 6 feet tall and his outfit looks unimaginative. Also, he's simply a surrogate for Dario Cueto, since Dario can't work matches.
Night Claw was introduced way too late in the season, and unless the character was recast, won't be returning for Season 3. That's because of the drama that led to Flamita/Fireball (who played Night Claw) leaving AAA, that was due to AAA having him play Octagon Jr., without the consent of the original Octagon.
Daga was brought in about as generic and bland as you could introduce a new wrestler. He had a very good match in his debut, but he lost and was immediately branded as a midcarder, much like "Darewolf" PJ Black was. That's a real shame since Daga does an incredible job of playing an arrogant, vicious rudo in AAA. Taya's introduction was done in a way that they expected the audience to know who she already was based on her work in AAA.
Kobra Moon and Mariposa look way too similar, and their stories were done in such a weak manner. I also feel like LU needs to get over the novelty of doing intergender matches and just create a women's division, since they have a lot more female wrestlers signed and used several more in dark matches throughout the last two seasons of tapings.