"...there had already been other movies dealing with the growing blur between the real and the virtual: The Truman Show, Minority Report, even Mulholland Drive, David Lynch's masterpiece. The Matrix's main point is as a paroxystic synthesis of all of that. Sadly, the mechanism is roughly done and don't arouse any trouble. Either characters are in the Matrix, that is in the digitalisation of everything. Or they are radically out of it, as it happens at Zion, the city of the rebels. Actually, the most interesting thing would be to show what does happen at the joining of these two worlds. Anyway, the real nuisance in this movie is that the brand-new problem of the simulation is mistaken with the very classic problem of the illusion, already mentionned by Plato. Here lies the mistake."
Baudrillard on The Matrix [via Fimoculous]