I really do miss this archtype of heel. So many fun villains never to be seen again. :(

Instead we get new-age Arab stereotypes. What ever happened to the Sheik characters, too?

That hasn't worked as a gimmick since the Iron Sheik. The WWF has never really had any skill with those characters though. They need to just get a guy with good charisma and force him to watch hours upon hours of the Sheik in action.