I do think that Jade Goody, as vile as she was in the CBB Household, should not be the only one criticised here. Channel 4 have some explaining to do as well!
But to be honest I think this has been a long time in coming. The organisers of the show seem to delight in creating explosive situations, so if the show is to continue, this is what I suggest they do to help things!
1) Be very careful who you select to go in. Don't put in people who would find such a situation vulnerable and don't put people in purely because they might cause a fuss (to put it mildly)
2) Don't put in a lot of alcohol on the opening night, only to withdraw it, only to put it back again, which causes contestants to overdo it slightly
3) 24/7 access to the Big Brother garden and awareness that each contestant needs their personal space. Perhaps seperate bedrooms would be ideal, so as to help foster that! However, contestants will have to help tend to that garden
4) Contestants are allowed to bring reading material with them. The organisers can check it (so for example, no one brings in The Protocols of the Elders of Zion etc..), but reading material will help give contestants something to do
5) In defending themselves Channel 4 seem to suggest that racism is wrong but bullying is okay. Bullying is never okay and any form of bullying should be stopped with a warning from Big Brother. A second warning should lead to an automatic eviction, which leads to....
6) Some house rules and regulations given to contestants before they go in
It's not much, but it might help a lot