It's so over the top that one would think that no-one would mistake it for historical reality but I guess it shows you can never overestimate audiences.
I find it interesting that some Iranian groups are so offended by it. If anything, they could take the film as an example of a small, determined group fighting against a huge number of well equipped enemy. Remember, everyone thinks that they're the good guys.
There's more to this, actually, than what meets the eye. There's hardly anything Eastern about the way the Persians are depicted in 300, so even an Iraqi insurgent could probably identify with the heroes of 300 and regard Xerxes & co as representative of American Imperial might
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