I think the fact that this movie embodies the feel of Israel in so many ways is what makes it a great movie. Faye Dunaway's character (Faye Milano) comes to Israel with preconceived notions about the Israeli/Palestinian conflict and sees the situation as many people who live outside Israel do--as 'poor Palestinians living under an Israeli occupation'; her time in Israel, however, proves otherwise. She realizes that the situation is so much more complicated then she had believed, and she witnesses firsthand the violence of the Palestinian people, even violence perpetrated by children. However, the movie also shows the human side of the Palestinians & their yearning for recognition. Faye Milano's preconceived views change drastically as she realizes the clear truth of it all--Israel is simply a small democratic state protecting its own while struggling to maintain it's dignity and values.
Moreover, the story highlights the dangers of the media--how a lone reporter's error can be printed and poison the minds of the readers. We don't like to think of our media as propaganda, but often our reporters and photographers sensationalize stories and, in printing them in popular newspapers, send the masses a false image of reality.
There is a story within the movie that highlights this point in an extraordinary fashion.
I visited Israel in the past year & went to visit the children in a Jerusalem hospital, both Israeli and Palestinian children alike. The Israeli doctors & nurses were incredible--treating all children with love and devotion, regardless of their race or nationality. I was struck at the Israeli woman and Palestinian woman in the same room, communicating and wishing the other woman's child well. If you want to see the true face of Israel, it was in that hospital in downtown Jerusalem.