Yes, eikaiwa can be a mix of entertainment, therapy, and sometimes actual English learning. My main goal at my school is to teach them how to learn on their own. A lot of people just don't know how to study language. But it is also entertainment a lot of the time, as in joking around and having a good time. I don't fake it though, if I feel like shit I let my students know. I think most people would rather see all sides of the teacher anyway, not a fake Genki face all the time.
But I run my own show, so I'm free to do it however I want.