So in, say, Britain with a no-fault legal system none of those things happen, right?
Oh, right. Those things all still happen despite not having some shyster lawyer advertising on TV about suing you. What doesn't happen is all those stupid unnecessary head CTs in the ED for someone who bumped their head. I can see virtually no advantages to our tort system for doctors or patients compared how the rest of the world does it. There is a huge, huge advantage for one group though... fortunately they write the laws.
Most of our tort laws have their genesis in British law, so it's really them to blame, not praise, for their system if you don't like ours. As for no-fault -- when you have socialized medicine this is a necessity -- you can't have doctors getting paid squat AND getting sued. We sort of have the same set up -- it is very hard to sue the government in the US. And in general tort law works on a contingency fee basis for the plaintiff's attorney -- they only make money if they prevail. But they can be fined for bringing frivolous cases (as that term is used in law, not on SDN). So lawyers tend not to take blatently bad cases.
As for attorney advertising, while this doesn't help things, this doesn't drive the boat. Negligence lawsuits were common before television was even invented. Unless you hung out at the courthouses though, you wouldn't know about it -- these days you do. The more "white shoe" attorneys as a group (constituting a majority of lawyers, BTW) have periodically pushed to ban lawyer advertising, as unseemly and damaging to the image of the profession. However the US Supreme Court has held that this is the only way some of the poorer members of the public know their rights and know they have access to lawyers, and so these have been protected by the courts as a public service. So most lawyers don't want the TV ads any more than you do.
The lawyers don't drive lawsuits any more than a car drives itself. A flashy car ad might encourage you to drive more, but it's still the plaintiff/driver who makes this all happen. Lawyers profit from litigiousness, but they don't create it. Doctors who are perceived as wealthy by the public, don't explain things well, make well publicized mistakes, don't befriend patients, have "House"-like personalities, etc are far more likely to drive a patient into "I'll sue you" mode than any lawyer TV ad. Honestly I've heard far more "I'm going to sue you" language in the hospital setting than in my legal career. The public doesn't trust doctors, hospitals, and has a lawsuit mindset. You can't really blame lawyers for that. Some of the ads do fuel this, but public perception of doctors comes from more of an image problem, ranging from the perception that all doctors are rich, to an inability to understand medicine, to notions that alternative medicine is actually medicine just as good as evidence based medicine and so on. The fact that the public eats it up when actors like Tom Cruise say psychiatry is a farce and Suzanne Somers says she cured cancer on her own, and Jenny McCarthy says vaccines gave her kid autism but she cured it, and Jillian Barberie went on her talk show and said whenever she feels a cold coming on she goes to her doctor to get a Z-pack, etc shows the public doesn't understand medicine any more than the *****s it exalts as celebrities. The public doesn't understand medicine. They feel like doctors work in the realm of magic, and prescribe pills for any cure, and if something goes bad, they caused it. Lawyers didn't create this perception, the public had it all along. They don't understand even the most basic aspects of medicine. They get bad advice from celebrities, they misinterpret stuff they read on the internet. And they come in to the doctors office, not trusting the doctor or their training.
When you as doctor fall short, you had better believe that there will be finger pointing. And lawyers simply benefit from this horrible image and PR problem, not be the cause of it.
How do you fix it? Not tort reform. When you take a group of people who already don't trust you, and say you are enacting a law to protect yourself from them, that doesn't fix the problem, just the consequences. The way to limit lawsuits, as has been shown in multiple studies, is to spend time talking to the patient. Make them understand what's going on. Make them trust you as a person. Befriend them. Those are the doctors who rarely get sued. The dude who sees them as piecemeal work to see in 15 minutes or less and wants tort reform to protect from the consequences is the one who gets sued.