Yes, that is horrible.
It is exploitative. There are dozens of cameras, hundreds of hours of footage, so they will simply select the most controversial stuff, as that will generate highest viewing ratings.
Just look at the differences between the first season of "Big Brother" and the fifth or sixth. Assuming the US version is not that much different from the Dutch version. The first season was much tamer, and now you have:
a) more 'freaks' being contestants. I have no issue with freaks (I am one) , but to simply select them for the bizarre behavior and troublesome interactions they will generate ...
b) a pregnant woman giving birth in the Big Brother house (happened in the Dutch one)
c) much more bizarre assignments.
etc.
Reality TV is actually quite unreal.
Too bad you can't tell your children that Mr. Teddy will see what they are doing (they simply won't believe it anymore).