Chairboy is correct that most people who saw it on TV were seeing tape, not live coverage. Only some schools in the US were carrying it live via NASA, and they cut away seconds after the incident. They came back to it, though.
It doesn't really matter - live or tape. As Chairboy is saying, there are still plenty of myths about it (as with all things, since people are people...), but leaving the public with the myth that the flight was an unavoidable disaster inherent in the dangers of spaceflight was the saddest thing.