We had the discussion about sports day a while back on here, my feeling is that a 'hybrid' sports day is the answer - fun team games for most of the kids (sack race, egg and spoon, and if done as my children's school do with the focus being on 'number of repetitions in 1 minute' rather than 'first to finish' then you don't have the kid trailing in at the end problem). The teams are HIGHLY competitive, and there is a winning team at the end. The best runners from each class then have a competitive running race at the end of the day, with medals for the winners. (They are selected via trials in PE lessons). So the non-sporty children join in for fun, but with an element of competition, but without the ritual humiliation that I remember from sports days. THe sporty children get to compete. There are individual winners from the best runners, and an overall winning team.
I have a real problem with the idea that it is ok to force children to take part in very competitive running races in front of all the parents - you would never make a child who was rubbish at the violin stand on a stage in front of the whole school and all the parents and get them to scrape away, and then tell them they were the worst at it. So why force children who are not good runners to do that? But I think it's good for everyone to join in, in a fun way, whilst allowing the best to compete. That's how sport is in real life - most of us enjoy recreational sport, a few will go on to proper 'competitive' sport.
As far as the programme goes, it was so clearly heavily edited to show a particular 'story' that I don't think any conclusions can really be drawn. Give any teacher 3 days a week to focus on literacy solely, and there will be massive improvements. Plus, the effect of the TV cameras may have been to encourage parents to help at home with the reading more. Statistically, the best thing you can do to improve literacy outcomes is to teach boys and girls separately, and it would have been interesting to have another group where they just did this, without all the tree climbing/rabbit skinning etc, and then compare outcomes.
It would also have been interesting to see if the girls benefited from the 'Gareth approach' in the same way. He seemed to think they were happiest colouring princesses pink, but there we go....