You say that championship race is about winning and tactics and that's the whole thing I have been posting here. If race is tactical and not raw speed how does it matter if an athlete's PR is WR or not? We really have to see long distance running different from short distance. But
@Sysyphus has a better perspective on this: If Mo could have held the WRs, he would be going for it and he couldn't.
I don't know how things are today, but back in the day WR's were a big deal. I started running in around 1979. Back then every now and then our newspaper (in India) would post a world record in the middle to long distances. I remember Rono's 13:08, then 13:06. Then David Moorcroft ran the first 13:00 5k, that was huge. In the meantime, Coe and Ovett were taking turns breaking the 800m and 1500m.
We were waiting for the first sub 13:00 5k, and the first sub 3:30 1500m, and even the first sub 1:40 800m. Yes, Coe had in an interview promised he would stop nibbling at the WR's and would make substantial cuts. I can't recall, but either he or a chap named Joaquim Cruz talking of doing 1:38/1:39 for the 2 laps !! That never happened
In the meantime, the 1980 OG was marred by the boycott, and 1984 had a reverse boycott. Not to knock on the 1980 games, I do sort of remember the buzz around the Coe-Ovett races.
Anyway, if you read Seb Coe's (auto)biography,
Running Free (a very popular book at that time), he goes into a lot of details of both all the championship races he ran, and the various WR's. It was an exciting read, and you'll see how exciting WR's just are. To run faster than anyone else has, over a distance.