I've talked to lots of reality show editors, because this is absolutely fascinating to me. This sort of thing happens all the time. Villains are created, feuds are manufactured and whole conversations are built out of random, unrelated words recorded across days and days. The film crews have literally hundreds of hours of raw footage and audio to work with, after all, so it probably isn't that hard to make your characters say almost anything.
Reality Show: The Reality Show would be a contest that focused on reality TV editors. Five teams of editors would all be given the same pile of raw footage of, say, a bunch of people living together in a house (or, in season 2, a zoo!). There is no immediately clear narrative in the footage -- it's just a bunch of people hanging out and talking, and it's up to each team of editors to edit together the most exciting and dramatic story by manipulating the footage using all of the tricks they've accumulated over their years of distorting footage.
"... splice in the CNN footage, fade ... annnd there. Snooki just orchestrated the Rwandan genocide."
It would be a fun deconstruction of reality TV because it would highlight better than any other show exactly how fake reality TV really is, plus it would be fun to see a bunch of wildly different stories all being told with the same material.