I agree with your broad premise about social media frequently being a poor representation of day to day life. The it's all shit part probably implies you're at least somewhat cynical. It's clearly not all shit, plenty of it certainly is. People frequently live different quality of lives vs their peers in fact; some people live amazing lives, some people live horrible lives. In a developed country, by far the largest distribution is likely to be a mixture of good and blah, with some occasional amazing and some bad thrown in.
> We need to drop this total farce of a behavior and stop conning each other if we hope to rise above it.
That behavior has always existed, it will always exist, so long as humanity does. Nothing can change it short of altering humanity through technology (and then we're something else), forced evolution (which we have begun, first pitch of the first inning; but it will probably take hundreds of years before we very substantially alter what we are; and we may make these things even worse, sharper). It's hard wired signaling and competition built into human nature, all the way down to the most fundamental aspects of what we are, including the pursuit of reproduction. Social media is nothing more than an aggressive, in your face, projected expression of it. It's the expression of many of the driving forces of human nature, amped up: sex, lust, attraction, status, materialism, greed, competition, envy, jealousy, pride, fear, validation, anger, inspiration, with some awww kittens & puppies thrown in. And that's also why people are drawn to it so intensely, it's a drug rush.
You missed an important checkmark on realism: 'we' can't rise above these things, humanity is these things. That's the actual reality. And it isn't going away, people will be complaining about all of this stuff in exactly the same way 20 or 30 years from now, except this will all seem tame compared to what will occur in the future: it will get worse yet.