I'm of two minds here on this topic and a lot of it depends heavily on how the crap would be incorporated. On the one hand, it could send a message to workers, kids, and families alike about the dangers of substance abuse. It might be more effective than those 80's anti-drug commercials with the frying pan and the egg.
If done correctly, could it make for a compelling drama? Yeah, there are a lot of people that enjoy watching a train wreck. It'd be one of those things where you'd be repulsed but you couldn't look away.
On the other hand, incorporating Jeff's real-life drug troubles would be the biggest and longest shoot promo ever. It would be a constant act of shaming him publicly, which could make him see the error of his ways and go to rehab or make him turtle up, say, "screw you" to everyone, and he'd continue on his path of self-destruction. Even worse, if the storylines brought Jeff a lot of attention, would he want to keep that attention by continuing his self-destruction?
The other factor in this would be Matt Hardy and the rest of the Hardy family. How would they feel having Jeff's personal problems and dirty laundry getting aired to make a profit and promote wrestling storylines?
I'm seeing more negatives than positives here. I want him to get better and not take the risk of isolating him and embarrassing him. I would think Victory Road would be enough public humiliation to get him (with possible family interaction) to clean up his act.
My opinion after all that if it isn't obvious: bad idea.