"Based on True Events" movies and television shows

Are movies and television shows claiming to be based on true stories just another form of tabloidization. Perhaps if you were to ask the actual people these movies and TV shows based their plots off of, you would find that tabloidization is every bit as prominent on TV as it is in journals and magazines. Movies are investments and "based on true life" movies are investments banking on making money from the popularity of dramatized true events that actually happened to someone. Do some movies and television shows destroy some people's lives and reputations by twisting and tabloiding the details of their real life events? For the most part, "based on a true story" movies and tv shows are in the genres of crime, horror, or drama because comedy and action is much easier to create from scratch then plots for these other genres. Based on true events plots usually "frankenstein" real peoples' stories, or take bits and pieces from it and emphasize and dramatize those events to make for an interesting movie. However, many people who see the finished products of these movies based on their lives or events are highly dissappointed at how they are portrayed or how their story is twisted to the point of no recognition. Many times, movies made after the certain people they are portraying are dead cause a stir with friends or family members who once knew this person. Some shows and movies do not do enough research to understand how a person acted in their personal lives and sometimes "based on true life" stories are done very well, but friends and family become upset because although the movie may portray their famous loved on in their true light (which may not always be a good thing) friends and family members do not wish for the whole world to remember them in this way or that way. For example, the 1986 film Sid and Nancy, supposedly portrayed the lives and self-destructive relationship of Sid Vicious, bass player for the Sex Pistols and his girl friend Nancy Spungen. The movie spared no detail when related the story of two heroin addicts in 1970s England and New York City, sprayed in with violence ,self destruction and punk rock couture. Though this movie was made popular by the renewed interest in punk music and drug addiction in the 1980s, sources once close to both Sid Vicious and Nancy Spungen say this movie was awful and completely incorrect. John Lydon, former lead singer of the Sex Pistols commented on the movie in a very negative manner saying that the film glorified heroin addiction and made Sid seem like a one dimensional sod. Other movie goers close to Vicious agreed with Lydon saying that the movie was meant to show Sid's personal life with girlfriend Nancy, however his characteristics were all wrong. The movie portrayed Sid as this outgoing, violent punk rock monster but in real life he was not like that, that was just his stage persona. Sid was quiet and shy and was incredibly sweet. In fact, many people believe his stage name Sid Vicious was given to him partly because he would never hurt a fly. Other movies and television series who base their plots on events from no-named people, often over-dramatize the events(which they must do to keep an audience hooked). However, I must wonder if the people who watch these stories based on events from their own lives, become even more traumatized when seeing how skewed and overemphasized the event becomes on television. Television shows like Law and Order sometimes base their plots on true events, many times this means the sequence of events for a rape or a murder or a kidnapping. I guess when people agree to let these shows use their stories, they know full-well that their own traumatic events will be twisted and tabloided and there for peoplet to watch over and over again, much like how celebrities know that tabloidization comes with the territory of fame.