Just watched the movie. And, it was pretty good.
The third movie answered everything. Most importantly, how programs stay separate, how Smith got outside the Matrix, and how Neo had his "powers" outside the Matrix. And, most importantly, why Neo didn't die in the first movie.
Before i saw the movie, i thought the answer was simple. Smith made the one guy crazy, so the the guy *thought* he was Smith. And Neo had his powers because he was in the meta-Matrix. That would have been a good answer (arguably a better one), nonetheless they came up with more.
Here's how i understood what they presented. It works with some "religous" overtones, but i think that's what they were aiming for.
There is a body and a spirit. The spirit can live without the body, the body cannot live without the spirit. The world is the place for bodies (humans, animals) that house spirits (mind). The matrix is a place for spirits (programs) that imagine bodies. Some question if an afterlife has a body. If so what will the body look like? What it did when it died? In its prime? Whatever the spirit wants? This is a fun question. In the Matrix it is real. Any program gets whichever body it thinks represents itself.
Now, Neo, was a body with a very powerful spirit. All of them went into the Matrix in spirit only. Well, most of their spirit. Some must stay to keep the body alive. The spirit then exists in this other world, and like any program, chooses its body.
A mind cannot just change anything in the Matrix. The Matrix runs the show. However, put up a fight, and the will power powers your spirit to overpower the Matrix. This power is belief. The more you believe, the stronger the will, the stronger the spirit. Most people identify with their bodies, so they can fight to keep their body in the Matrix, since they simply believe that their bodies exist. And, if they believe the rules are merely suggestions, they bend as far as they believe they do. So, if a person who truly believes he was powerful went in, he would have ultimate control. And that is the power of the mind that is controlled by a body.
There is a second aspect though. If a mind gets strong enough, it can actually leave the body. Not through connections, but otherwise. Similar to an OBE. If that happens, the mind is even stronger, as it no longer has a body to constrain it.
Now, Neo didn't believe he died in the first movie. Normally when a person died in the matrix, their spirit dies. Then, their brain in their body registers death and the person is gone. Neo, has a mind that "left" the body, at least partially. So, he died in the Matrix, and his body lost its spirit outside ther Matrix. However, his spirit, that was detached, went back into the body. And, now he knew his body could not constrain him.
Neo's power outside the Matrix now was similar. His spirit did it all. In the Matrix, he had rules to play with that "help"ed him. Outside the matrix he hasn't this help, and thus is takes an even stronger belief. And, since he is using actual brain power, it tires him out, and gets better with practice.
Smith was a program that, after seeing Neo, realized power wasn't in breaking the rules. But, in relaizing that the spirit has all the power. Smith was an AI. A very powerful AI. He was even able to have emotions he was not programmed for. He simply evolved. He now had a spirit. A strong spirit that could be moved around. So, he let it taked over other programs with less powerful spirits, and even a human, by taking over his body. It wasn't a virus that rewrote their code. It was another spirit in their bodies, which was more powerful and thus took control.
The Oracle didn't mind being taken over, because she knew she was more powerful in spirit. She couldn't fight all the agents. But she could, at least for a moment, subdue the Smith spirit in her and come through. She figured Neo may need a reminder. The acutal fight between Smith and Neo wasn't a fight on rules, or who could bend them. It was a fight about spirit. Emotion powers the spirit, and whomever had the stronger emotion won the fight. Smith was also a bit crazy (realizing there was no purpose to anything) and had stronger emotions. Neo could not win that fight. Though, he could live with the Smith spirit, and overpower it now and then, like the Oracle. And that, coupled with the machine he was with to get into the Matrix, was able to wipe out Smith. The machine knew what to do, but needed a place to inject it. With Neo being part of the Smith Borg, and being able to get something through, it worked out.
In the end the Oracle didn't know the future. She simple knew the nature of life, and the power of the spirit. Thus, she could only show you were the choices were. It was up to the spirits to fight it out.
Programs stayed separate in the Matrix out of sheer will power. It is the will to be unique. Thus, two program that choose to share, could even together build a third program.
Anyway, i liked the movie. The second movie was pretty low on the scale, but it needed to setup for the third. The third movie was good, it was a nice spin, and certainly unexpected.
If there was a fourth movie, what would it be about? Well, possibly what the second Highlander *should* have been about. Of course, the obligatory scene would be having a new UN with the machines having been accepted.
About that coesxistence thing though. Who'd actually want to leave the Matrix? With the ability to let some humans and machines coexist, and have the Matrix be rewritten like a holodeck, i'd think many would choose their own matrix each day. And the machines would do work, not for money, but for energy.
(On re-read, the wording here is horrid, and the structure is almost non-existant. But it's late, and i just wanted to get the idea out.)