WWE legend X-Pac understands why people are upset Chyna is going into the WWE Hall of Fame as a part of D-Generation X ... and not individually ... but he insists it's still a VICTORY for her.
"I totally understand where they're coming from," Sean Waltman tells TMZ Sports ... "Of course, she deserves to go in by herself."
But, Waltman -- who was engaged to Chyna in real life in 2003 -- says the WWE only has a limited number of people they can induct each year, and he believes they're doing the best they can.