Look, if you turn to MTV for insightful, revealing programming (save, perhaps, True Life) you need to take a better look at what you're watching. Getting progressively worse, MTV's shows are shallow, materialistic and idiotic. That's not to say shows like this don't have their place (who hasn't siphoned some entertainment at such pitiful classics as Date My Mom, Parental Control or Next?) but my God, you really need to understand what it is you're watching. Laguna Beach is by far the worst excuse for reality television I have ever seen, and I'm not a fan of reality TV to begin with.
One: this is not a likely reality in that way that you know it (based on simple economical statistics). These are the airy and hollow social interactions of a bunch of spoiled teenagers who live in their own secluded little world, have everything handed to them on a silver platter, and, out of sheer boredom and listlessness, blow common social problems so far out of proportion that it takes all the will power of the viewer not to pull an Elvis and unload a round into the television. Two: this is not their reality in anyway either since there is an insane amount of editing that takes place between what actually goes on and what you end up seeing.
If you're a fan of reality TV and are willing to suspend disbelief for an agonizing half an hour, then you might enjoy this. Otherwise, you'll see this show for what it is- a bunch of snobby brats advertised as genuine everyman/woman characters that most people can relate to and generally pathetic entertainment. Watch at your own risk.