Because it's a Television Show, it's not real life...This is admittedly an extreme storyline, nobody in wrestling history that I can remember has ever been "killed off" in a storyline before. There were a few dodgy moments revolving around death (Big Boss Man stealing Big Show's father's coffin, that was sick but comical at the same time) but I dont ever remember someone supposedly dying.
My guess is they wanted to kill off the "Mr McMahon" character and this will end up being a "whodunit?" storyline resulting in everyone's favourite Irishman being the prime suspect
I'm kidding about that last part of course
On a separate note: Kennedy on Raw! Woo! It's about time he gets to the main stage.
Smackdown can say what it wants about it being the better brand, but it sucks horribly and right now I actually prefer ECW over Smackdown. Once Kennedy recovers from his injury (probably about a month to go) Raw is gonna explode.