Being 'against' a neighbor is one thing. Accusing them (with zero proof, mind you) of killing children to use their blood in bread is something else entirely. Of course, all Arabs aren't terrorists. Not even close. But it does seem like the majority of terrorists are Arabs, does it not? Should that fact be ignored?

Those films you mention are located in the 'fiction' department. Al-Shatat is presented as fact, as a documentary. No one really believes that Jackie Chan is out there killing Arabs for Nazi gold. No one believes Arnold Schwarzenegger ever fought Arabs with nuclear weapons. But Al-Shatat, presented as it is, as fact, might convince Arabs that Jews really do kill children to make matzah.

One must also take into account purpose. The purpose of making Operation Condor (or whatever) is to entertain people with an obviously fictional story, in order to make money at the box office or DVD stores. If the bad guys are Arabs, so what? And if they were Jewish, so what again? The movie isn't saying all Arabs are bad, just that the Arabs fighting Jackie are bad. The bad guys have to be *something*. The purpose of Al-Shatat, on the contrary, is obviously to incite hatred between Jews and Christians/Arabs. It portrays ALL Jews as evil.