Stories need a protagonist and an antagonist. In pro wrestling, where you're not going to be telling super complex, nuanced stories, having a simple good guy/bad guy dynamic is for the best. You can have some shades of grey, obviously. Especially if you want to make the story more compelling. That said, there's nothing wrong with faces/heels as a framing device.
The problem with WWE, as ever, is the quality of their storytelling. First, let's dispell this notion that WWE crowds are indignant smarks who only cheer heels. Off the top of my head, you got Naomi, Becky Lynch, The New Day, Shane McMahon, Daniel Bryan, Dean Ambrose, AJ Styles, Sasha Banks, Chris Jericho, Breezango, and Finn Balor as people currently playing babyface who get proper babyface reactions. Yes, the audience will start to cheer heels they find entertaining (The Miz and Kevin Owens are two big examples), but that's because they're entertained and appreciate good work.
The bigger problem is that so many modern babyfaces suck. They're all the same bland, Superman-lite character. Half the time, the reason the heels get cheered is that they're the one in the feud that has an actual personality the audience can grasp onto. Like, look at this feud between Apollo Crews and Elias Samson. What reason would I have to cheer for Apollo's bland ass over The Drifter? Because he's a face so I'm "supposed" to? fukk that.
You can most certainly write stories without a protagonist/antagonist. When Cena called Roman out for a fair one on one match, was Cena really an antagonist? At that level a match, you can make things decidedly neutral with two distinct characters whereas the audience choose its own rooting interest.