I think the point here is in the title of these shows... 'reality' TV is far from reality. Yet if I spoke another language, and had never come across the concept (I guess it is a colloquialism) then I would be forced to interpret this type of show as portaying the 'reality' of Western (i.e. American) life.
As a westerner I don't really quite understand the attraction of reality TV. Whether it comes from some latent desire to see people hurt others without being hurt in turn, whether it is a fascination with doing things we would never dare to do ourselves, or a simple horror that these people would put themselves through such anguish for money or physical satisfaction. Whatever it is, it is VERY popular, and what is popular will always attract those who wish to exploit that popularity for big bucks... and so perpetuate the cycle.
Growing up I watched programs like the Cosby's and game shows and other more 'family' oriented programming. With the changing of the generations though the programming demands have also changed, and now if we are to believe the figures of who watches what, family TV no longer rakes in the bickies that TV execs need to show it.
i completely agree that it would be nice to go back to some good, clean, 'normal' programs... but unfortunately normality doesn't sell, sex, backstabbing, bitching, hardship and bloodshed does. I can't see programming changing in the next few years without some radical shifts in view from the general public. Good on you for bringing up the point C & H Wood, I heartily hope that something is done, and I will stick my hand up and support it when it happens, until then I'm crossing my fingers but not holding my breath.