I've only seen one of these but it worked pretty well as reality TV in my mind. Of course it's contrived but it's reality telly, and at least one of the participants is going to end up elevated to higher comedy echelons. Why not have a gamble with that if you are a rung or two down?
One more thing: we all know the acts are heavily edited to tell a story. Any chance that Kate Copstick has been heavily edited too, to make her the complete villain that these shows need? I have no idea, but I do know that I take everything I see on reality shows with a pinch of salt. It's entertainment, that's all.