To me, there is a pretty fine line between history and entertainment though today the line continues to get even blurrier - just look at some of the crap programming on the history channel. The only issue I take is when movie-makers try to advertise as "the real, true story" and it is nothing but. People need to be skeptical enough to not believe everything they first see/read about something.
That said, I have to agree with pol-edra on this one though. Movie-making, for entertainment purposes, is a form of storytelling at its most basic level. If they take liberties, however extreme, it is done in effort to ultimately entertain, not inform. It is a classic tradition going back to the storyteller by a campfire: tall-tales, folk heroes, stuff like that and even older. Plus, the more people who tell the story, transcribe it, translate it, etc, the more changes there are.
I get the "insidious" angle of misinforming the less educated but that is a bigger can of worms entirely. I mean, someone who thinks Forrest Gump actually did any of those historical things or even existed at all speaks to the major failings of society in lifting the shroud of ignorance from certain people.
Ultimately, people pay to be entertained rather than informed otherwise non-fiction and documentaries would the most popular type of book & visual medium respectively.
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