Improv when it's done well should be indistinguishable from sketch comedy... improvisation done averagely is exactly what you've described - and it's cringe.

The skill of an improviser is taking that sort of banter you have with your family and friends round a table - and being able to do that as a compere. Sketch improv and short form is more about performing a difficult task well enough that it's indistinguishable from someone who has practiced. It's not for everyone.

It is better in person and doesn't really work on TV. The improvised soap opera was great fun to be part of, not all of it was jokes - most of it was narrative structure. :o)