You're honestly way off with your assessment of Joe Lombardo. He's on tape relaying messages for his bosses (Carlisi & Ferriola) & the top crew (Cicero). That's the crew Rocky took over. The #1 crew.

Yes he was given the larger rackets in Vegas as he had a very successful decade during the 70s & was well liked (at that time) by the bosses. Vegas was looked at as a very risky endeavour with good upside, but potentially disastrous. Obviously the latter applied in Lombardo's case. After Spilotro botched it, Lumbo & his crew were looked down upon by the brass & he had reason to be afraid for his life (not that he was) when he got out of the can. If it were the 50s he would've been demoted or possibly even killed. Eboli was also skimming from his rackets & Lumbo was responsible for him.

Grand Avenue was known for two things: burglary & proximity to Rush Street/city hall/etc. Lombardo likely had many more friends in high places than Infelice but when it came to Outfit hierarchy in the late 80s/early 90s, Rocky was above him. He took over the top crew, that's really all that needs to be said.

And what's this about Rocky being a street Hood, etc. They're all street hoods. Lombardo was a career thief who was doing jewelry runs & hits while he was crew boss. Just because he had charisma & was an outlandish character doesn't make him any less of a Hood.