This is a fascinating subject matter.

For me, I think it's important for characters to show attacks and possibly react/respond to them in RPs. Now, it could be intentional of the character to ignore the actions, but I would feel remiss if they were treated as if they had just never happened. That being said, I feel like attacks are all fine as long as the attack isn't forcing someone else's character to do something they might otherwise not do. Like Syn said earlier, piss in my mouth but don't make me piss in yours.

As far as reacting to character's gimmicks, I think that's a case by case matter. It definitely depends on the wrestler, but calling out things like super powers or monsters as just hoaky light tricks... well it's lazy in my opinion. Could you imagine Steve Austin just coming out and saying Kane is some dude named Glen wearing a Jason mask? It kills the illusion of wrestling and also... just doesn't read as very strong smack talk imo. It would read much stronger if you were to acknowledge the power of an individual like that and discuss the flaws that you would exploit. I mean everything/everyone has a flaw to exploit. Even going into the records on the shows as an example is a strong case to make if nothing else.

Very interested to see what others come up with for this, but I have liked reading everyone's responses.