You made a few claims that are unsubstantiated.
1. "How can it be that a leader who shuts down television stations and denies freedom of the press is lauded with such praise and given such accolades?"
Chavez hasn't shut down any television station. He did not renew the RCTV license. This is a media station that were involved in the failed 2002 coup against Chavez. THAT's undemocratic! Most of the media in Venezuela is private and heavily anti-Chavez despite the convincing wins in presidential elections.
http://www.fair.org/index.php?page=3107
2. "Answer me this, if the slowly forming dictatorship in Venezuela is so good, how come news organizations such as Al Jazera ran this:"
What argument do you have to suggest Venezuela is a slowly forming dictatorship? Chavez has repeatedly won elections by a large margin. The elections were declared fair by international organizations. The constitution is a document voted by the people (not just by politicians). Despite the opposition failing to overthrow Chavez in an extremely undemocratic move (which the US supported), they got enough signatures for a recall referendum in 2004. This ability to recall the president if he is doing a poor job is a new right given to the people by the new constitution created by Chavez' government. Chavez won the recall vote by 59%.
http://en.wikipedia.org/wiki/Venezuelan_recall_referendum,_2004
In the 2006 Venezuelan elections Chavez won with 62.87% of the votes. Again, all elections were monitored by international organizations and declared fair.
http://en.wikipedia.org/wiki/Venezuelan_presidential_election,_2006
Chavez consistently wins elections with a much larger margin than George Bush (who would barely win by a 1% margin in the United States) did in the two elections he was involved in. Please tell me how Venezuela is becoming a dictatorship. It would seem to be more democratic than the United States given that the people get what they want. Despite Bush having a 62% disapproval rating he remains in power. If this was Venezuela, there would be a recall referendum and the people (not do-nothing Congress) would have the ability to vote him out of power, thanks to the new constitution introduced by the Chavez government and voted in by the people.
As for what Al Jazeera wrote, refer to the first FAIR link I posted.
As for the documentary you watched, they may have not talked about the licensing issues with RCTV because it was probably filmed before it happened.