Firstly - I may have read the annual, I may not have. I can't remember. And since this is #001, I shouldn't have to have read anything prior to it to 'get it'.
As for the right/wrong way - My problem isn't so much that Mysterio killed Kingpin, but rather that it was just needless and gratuitous. I don't mean from Mysterio's point of view - from his, it's totally fine. From Bendis', it's shoddy.
And you're probably right - I bash more than I... I dunno what the word is.
Anyhow, the "right" way to introduce a villain...
The problem with having a new villain kill and old villain is that it's done to show how badass the new villain is. See, the new villain generates no heat or excitement or menace. Instead, it
cannibalizes the previous villain, stealing
their menace. The writer removes a toy from the toybox and replaces it with one of their own making. The original villain however, did not do this. The original villain worked on its own. The only reason the new villain does this is because it's easier.
For Mysterio, the 'right way' (as if there's only one and I know it!) could've been probably more menacing if you had a bunch of mafia guys sitting in a room and Mysterio has called the meeting to take over the gangs and he's just an illusion and then boom and everyone dies.
Or something. I'm really knackered. Tell you what, if I made no sense or was rubbish, let me know and I'll try again properly. I know what I'm trying to say, but I'm finding it hard to articulate. And I'm sure I can come up with "5 ways to introduce Ultimate Mysterio" than killing the Kingpin when I'm not this tired.