Doug,
In my opinion, yes, they are exaggerated. What a lot of the broadcasters fail to mention are many of the variables that a particular player is faced with. Is the shot uphill/downhill? If so, how much. Most commentators mention wind, but little else.
A 175 yard shot is not always a 175 yard club. As you know, an actual 175 yards could play anywhere from 150 to 190 yards depending.
Many times you'll hear a player is 190 yards to the hole. What they don't mention is that a lot of times the player is not trying to hit his ball 190 yards. He may be trying to land it 180, hoping to keep the ball under the hole, and to avoid going over the green. There are so many factors that those top level players consider, but all you hear on TV is..."Boy, he's got 205 to the stick, and he's got a 6 iron!" That is how those distances get exaggerated...the viewer usually doesn't get the whole picture.