No. The original Spongebob series is all about fun, friendship and adventures in Bikini Bottom. The 'Spongebob real story' is a completely different and often very dark and inappropriate take that has nothing to do with the original positive nature of the show.
Given only 'dateline karen read story', Karen's identity remains a mystery. She might be a staff member at Dateline who was reading a story for work purposes. Or she could be a person who was interviewed by Dateline and was reading a story during the interview, or she could be an ordinary person whose story - reading experience is being highlighted in relation to Dateline.
Mr. Krabs would probably be thinking about how this could be good for business. He might see it as an opportunity to create a new tourist attraction. Patrick would be really happy for Spongebob at first, but then he might get a bit jealous because he doesn't want to lose his best friend. Squidward would be extremely annoyed by all the commotion and the fact that he has to be part of the wedding in some way.
One way would be to introduce a new character who is interested in Spongebob. This would make Sandy realize her feelings for him. They could then have a series of events where they are forced to work together closely, like building a big project for the whole Bikini Bottom. During this process, they would start to notice the little things about each other that they like. Their friendship would slowly transform into a love story as they start to hold hands, exchange little gifts, and have secret looks at each other.
It's hard to say for sure. 'Karen' could be a blend of real incidents and creative imagination. Sometimes, such stories take real-life inspirations but are embellished for entertainment value.