So I started playing the demo with my Mad Catz TE cause I figured why the hell not try it.  I realized there are a few things mapped to RS and D-Pad. Anyone know if theres a way to change this in the full game? I find this really weird because they sell a stick like the TE for it.

Guess noone has played this game = /

Seems a little excessive to play the game with a fight stick.

Well they sell a Branded one for it... http://www.amazon.com/PlayStation-WWE-Stars-Brawl-Stick-3/dp/B004M25NNQ

That's hilarious.

Wow, that's some Kot-esque money milking right there

This game is suited more for serious play than you would expect.
I can't really answer your question, but I've seen level-up present WWE last wednesday.
Alex Valle who is one of the best Street Fighter players in the US talked about it and the guy he played used a TE stick. So it must be possible somehow.
Here is the link, it's right at the beginning.

Edit: There is a good thread about WWE on shoryuken, maybe you can find something in there: 
http://shoryuken.com/f2/official-wwe-all-stars-thread-strats-chat-player-lists-270148/

Never liked fight sticks myself. I feel it's a holdover from arcades and  I am just young enough to have been brought up on consoles and not in arcades. Kind of like the way some people are just better at thumbsticks other than keyboard and mouse.

I'm about to buy this game and I'm wondering this too. I have sticks, fightpads and regular controllers so it doesn't matter, but like the OP said, they sell an actual WWE All Stars Fightstick haha