Some argue that 'Taxi Driver' (also nominated) deserved the Oscar more. I'm not so sure. 'Rocky' came along at just the right time it was an uplifting story and people needed that back then.
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This time, the audience got what it wanted, a win for a guy who had been kicked down for so long. With more money, the film felt more lucid and better put together, which made it a whole new experience in itself.
We already know, don't we? Yet, Stallone's characters are sufficiently interesting enough for us to want to spend more time with them, seeing them in a world most of us don't know, living a life few of us would really want.
A story that didn't really need to be continued, per se, but nevertheless formed the foundation of one of the greatest film franchises of all time. That's right many people hate the 'Rocky' sequels, but apart from 'Part V they're all surprisingly entertaining and, more.
Rocky's actions are very believable, from his earnings feeling like a fortune to him (when they were obviously not to his illiteracy and his unsophisticated, "punch drunk" boxer. The ramifications of his past are believable.