Naw.. people don't generate reality, we only perceive reality. But we do generate that perception
Though I guess this depends on how you define reality. If reality to you means physical existence (ie the actual physical world around you made of matter and such), we definitely don't generate that. But if reality is the way we experience the world around us, that perception; the way we "understand" how these molecules interact; the way our brain forms "memories" of the dimension of time; how we are able to recall those memories once that time no longer exists the way we understand it is generated by us.
And obviously memory isn't a perfect recollection of the past exactly as it actually happened. If it was, we would be capable of experiencing every moment in time from our past at every moment of the present as time progresses. And if that were possible, we actually would be capable of generating a pseudo-reality from our memories and relive our entire life whenever we wanted. That itself causes many problems of it's own. For example, our brain's entire chemical reward system is designed to promote behaviors that help with survival (you eat: you feel good. you have sex: you feel good). If you can relive the past exactly as hit happened through memories, rather than expending energy to obtain food, you can simply relive the memory that evoked the same good feeling that eating caused, and according to your brain, you no longer need to eat. Note that your brain isn't pre-programmed to eat (in the most basic sense). It's programmed to engage in behaviors that result in a positive chemical response of dopamine release. Through the process of learning and inherited learning your brain knows that eating is one such activity that results in good feelings. And so people eat. Also, notice the necessity of repetition in the process of learning. Take listening to a song for example. You listen to a good song once, and you'll probably remember a few parts of it. Maybe you remember the chorus and a few of the major chords. Mainly, you remember the parts of the song that REPEAT many times. Listen to it a few more times and you'll remember parts that have similar patterns; possibly a refrain or two. But how many listens does it take to remember a guitar solo? 10? 20? This is because solos have very little in the way of repetition (though they do usually follow the same chord progression of the rest of the song, which makes memorization easier). Humans have a VERY difficult time remembering random sequences of events (notes, numbers, etc), hence why in simon-esque games, memorization of a pattern of just 10 events is by all means considered DIFFICULT. Your brain is programmed to make connections and learn from repetition, not from a single experience. Which is why you can't tell me what you ate for breakfast last Tuesday. It only happened once. This seems intuitive since we're used to the way our brain remembers things. But if you thing about it, it's actually very strange. You actually forget the VAST MAJORITY of your life, only remembering repetitive events or important ones (which your brain has subconsciously repeated to itself in order to form that memory). Point being, our ability to understand reality is limited by how our brains have evolved to process and store information for the purpose of learning for survival. Since we're only able to experience life through these flawed memories, our perception of reality is itself flawed.