Most magazines are fantasy sellers and reality is not the goal. If you wanted magazines to look like the average American woman she would be probably fat and poorly dressed and poorly made up.
This whole thing is just like the Dove campaign a few years ago to try to show "real women". Well real women probably don't buy those magazines anyways, mostly just teenage girls do.
The same with portrait photography, people don't want pictures of themselves, they want pictures of themselves looking like they are beautiful.
You can argue that beauty is an un made-up "natural" woman, and I'd probably agree but I don't see many women wanting to look that way.
How many romance novel do you think would sell if they were about reality?
You can also argue that retouched models in magazines hurt self esteem and body image in women. I'm sure it does. But the beauty and fashion and cosmetic industry is a multi billion dollar business and it's goal is to make women feel "not good enough" without their products. Think that's going to change?