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I think that he should give it a try. However if he did come back he'd have to accept a few things:
Shawn must face that he is a "hasbeen". He was once, no doubt the best in the business but now he is a bit older, he will not be able to match people like Triple H, Austin and the Rock. Although he managed to annoy almost everyone there was, he just wouldn't be able to get the crowd going as much. People like Angle will always be better than him now, so he needs to try and do what he did before, form a decent stable.
Forming a decent stable would probably make a great "face", he could help some of the younger wrestlers like test, who could have a real good chance of becoming one of the best in the business with the aid of HBK.
When he was in his prime a couple of years back he was able to pull big bucks from Vince McMahon, as he was scared that WCW would take him away. If he did come back he would need to accept less oney than he was earning, anyway, I think he would accept less money anyway as he knows he is a bit out of shape and older than he used to be.
He would have to try not hold a grudge against anyone, as that would just make him like angle and benoit, although it was fun watching them fight a couple of weeks back, it just isn't the same, it's getting boring. So HBK would have to try and move on and only get involved in short feuds if any.
If he did go for a title he would have to go for either the I/C title or European title. At the moment the I/C title is a bit boring, just mainly Triple H holding it and not having to defend it at all. But if Kane wins at Judgement Day, then it would be pointless HBK going for the title. If that happens he should go for the European title, this has also been extremely boring recently after Eddie has joined with the Hardyz. I think it would be good to have a new competator in this division as it will make it really interesting.
Personaly I would like to see him kick steven richard's butt for using his finisher, HBK should wack him in the chin with his sweet chin music. Then Steven and the whole of the right to censor could finally shut the hell up!
I know many people have been awaiting his return and I know I have, however, it there a perfect time for him to come back, Sumerslam? Will it really be worth him coming back? Will all the injuries he suffered effect him at all? and Will he just be a failure at coming back?
We'll just have to wait and see what the WWF script writers wil do about the whole issue.........