I absolutely see this. Even the most competitive contestant *cough*BRENNAN*cough* holds no animosity toward his fellow contestants, and "winning" is often nothing but being named winner, why a guy who is obviously trying to make sure everyone, including the contestants, is laughing.
Well, and I'm thinking about how one of the 'punishments' is 'give a sincere compliment'. I know we're getting heightened versions of these people, but at the same time I can also believe they can't be jerks, because they'd be getting better acting jobs. ;-)
Absolutely! That is an excellent point. They're getting better acting jobs and... it's working. Dropout is profitable. For a really good version of this, check out Thousandaire.