Why haven't they...

[McClef]

Rather than recite dozens of films I'll give you just one example: The Great Dictator, released in 1940. This was Charlie Chaplin's first all talking picture and, although nominally a comedy, in it Chaplin departed from his usual slapstick to include satire and social commentary. In the film he plays the dual roles of a Jewish barber in the ghetto, as well as Adenoid Hynkel, dictator of Tomania. Hitler's entire entourage is brilliantly satirized, as is his chief ally, Mussolini-- in this instance "Benzino Napaloni", the dictator of Bacteria, as played by Jack Oakie. The satire and social commentary was not lost on American audiences, and for the first time since the war had began, grass-roots Americans began to be openly hostile toward Hitler and his regime.

A brilliant film indeed but it hardly fits your defence of Hollywood at the time.

Chaplin remained a Brit throughout his entire Hollywood career and never became an American Citizen. He began preparation on the movie even before Britain went to war with Germany and he later stated that had he known the full horror of the Nazi regime he would never have made it. It was touch and go if it would ever be released and he had to largely finance it himself and in the teeth of alarm messages coming from United Artists.

http://en.wikipedia.org/wiki/The_Great_Dictator

So citing other examples of Hollywood's input in that period would still be welcome.

Just as soon as I finish the musical version of Oswald Mosley and Lord Ha-Ha In Love I'll get right on it.

Must be a long distance love story!

It's called Dramatic License, and it goes back to the days of Shakespeare. You remember him. He was English, and he never took liberties with history. Did he?

There is a world of difference between dramatic licence and wholesale rewriting of history which is less about taking liberties and more like taking the pi$$.