I learned a lot from that debate as well.
I'll try, but I can only answer from my personal experiences and readings.
(1) Is it as bad as some media outlets suggest?
It depends on what media outlets you are talking about. I don't usually follow European media, so I can't say much there. Here in the U.S., I found most media live by predominantly reporting negative news (not necessarily on China-related issues, but domestic and other international issues as well). Feel-good stories don't sell papers well, particularly those not about their audience, and they certainly don't help your chance of getting Pulitzer's. Throw in the fact that there are plenty of special interests groups behind the supposedly neutral and objective media (see also:
Human Rights and Media Manipulation), it is not that surprising to see a disproportionally large amount of articles reporting human rights problems in China. NPR and PBS usually are much better than CNN and FoxNews, and they are also preferred by some of my well-educated American friends. That being said, I would say that nearly all stories (of human rights violations in China) were probably true regardless of the media that reported them, except for, of course, those extremely anti-Chinese newspapers. The problem is, however, the perception that they created for their audience. Imagine for a person who has never being to a foreign country, and all he can see on the TV programs are L.A. riots, KKK and local government corruptions in the U.S., IRA in GB, Corsica Island in France, neo-Nazis in Germany...
Now, the human rights problem in China can be roughly lumped into two categories, one is happening in the central government level, where the laws and policies are made, the other is happening in the local level, where these policies are executed. I would continue next time, it's way past my bedtime here already.