By then, Hasbro had apparently decided to go all-in on the flashy, and ultimately the weird. As you mentioned, they were obviously chasing every trendy fad of that era - Chuckles = Miami Vice, Outback = Chuck Norris, Dress Blues Gung-Ho = Top Gun dress whites, Jinx - ever present 80's ninjas, etc. I'd have to assume they were looking to find ways to expand the fanbase, and incorporating athletes and wrestlers was the tamer, and more widely accepted side of it.
Though a little distracting, Sarge was at least military themed already. Fridge was just a phenomenon they tried to bank on with a single cheap mail order fig. He almost made sense the way they marketed him, but at least they didn't really try to make him the face of the line, like they did with Slaughter. Those two were as far as I was willing to go.
Their collaboration with Stephen King netted two of the biggest peg warmers I can recall in Crystal Ball and Sneak Peek. And whatever did or didn't work out with Rocky got us another peg warming dud in Big Boa.
I think Crock Master and Raptor were responses to the popularity of figures with "pets." That gimmick with a dash of fetish

got us those two. I think Cobra-La was an attempt to compete with the other weird/fantasy lines of the time - MOTU, Thundercats, Inhumanoids, etc.
Taken together with many of us "growing out of playing with toys," all that started the rapid decline of the line, after which Hasbro just desperately leaned further into the gimmicks. Neon, Eco/Toxo, cyborg, etc. And we all know how that ended.
You have to wonder if Hasbro had simply stayed closer to the near future military theming, without all the gimmicks, would it have still suffered the same fate, or would the next batch of kids have gravitated to it like we did? I guess it's actually a fairly fine line between being stuck in a rut with the OG "everything's green" and the "we went way too far" neon of the doomed later waves.