Your opinion is shit and your point that the wife was out of line with her reaction was stupid.
The fact that the outcome of a wrestling match is predetermined has nothing to do with the legitimate punishment Foley was taking, and it is completely understandable that his wife was upset to the point of tears. Telling her kids it's all "pretend" would have been worse, because it wasn't pretend. The Rock was trying to hurt Foley, with Foley's blessing. Intent of malice on The Rock's part is irrelevant in this case, and doesn't make what happened "pretend".
Again, Foley is at fault for willingly taking that abuse (even though his intentions were completely selfless, because the idea was to make The Rock look good, but carrying out those intentions in that manner was also very very stupid), and he was even more at fault for allowing his family to have a front row view. I'm not sure how you can criticize his wife for being traumatized by what she was seeing.