As with alot of things in wrestling the title of "First Undisputed Champion" was a tool to get Jericho over even further. I mean Jericho still uses the "i best rock and austin in the same night" line.
Deserve it... probably not as many before and at present (at that time) probably deserved it more, but despite the honour would have been wasted on The Rock or Austin... Jericho needed it more than them and WWE knew that.