Hollywood did quite a good job of ruining the reality of budo.
How do you go about ruining the reality of something? Is it really even possible? Did Van Gogh ruin the reality of a starry night?
Seems to be more a case of "one artist's interpretation".
Seems to me that you have the ultimate "reality". And on the other side, the perceptions of those who experience it. Sometimes those perceptions manifest in some medium of art. No prob in my book.
By the way, I've heard some pretty far out stories about O'sensei. I won't debate their veracity because I wasn't there. However, on the remote possibility that some of them aren't 100% factual, I certainly wouldn't say that they ruin the reality of The Man, Himself. And furthermore, I'd probably shell out the 10 bucks to see it if the Evil Empire of Hollywood saw fit to pump out a multi-million dollar blockbuster of his life.