According to "A Year in Pyongyang" (written by a Brit, see
http://www.aidanfc.net/a_year_in_pyongyang_1.html), in the 80s under Kim Il Sung there were plenty of people laughing in the streets. He describes many workers as having an attitude similar to playful children, and in particular he describes actual kids as "the pampered citizens of North Korea": always laughing, always playing, pampered by everyone. Keep in mind this was an account that didn't downplay the harsh realities of life in NK. It was also the 80s; things may have changed a lot since then.
So yes, I think it is confirmation bias on your part. Life in NK is probably not like we think it is. It is bizarre to us, yes, but the average person probably doesn't live in fear of soldiers raiding their homes, or in dread the Beloved Leader orders them killed. In all likelihood, regardless of how actual life in NK is, those are all fantasies on our part; preconceptions of how life in a weird dictatorship actually is.
I think I, a Westerner, wouldn't like living in NK. At the same time, I really do not think it's a living hell for its citizens -- certainly not in the movie-style dictatorship we sometimes imagine it to be.