The murder of Israel's Olympic team by a Palestinian group at the 1972 games got addressed in Steven Spielberg's "Munich", which focused on Mossad's efforts to find the perpetrators, and an agent's misgivings about his mission. The actual hijacking is the subject of William Graham's "21 Hours at Munich". The movie does manage to find a balance between showing the kidnappers' brutality and addressing the issues that they wanted to bring to the world's attention (namely the Palestinians' expulsion from their land). It was particularly ironic that the kidnapping happened since Germany wanted to atone for its past by ensuring that the Jews would be safe this time.
Admittedly, the movie takes such a neutral approach that it comes across as flat. But it at least addresses the issues. The cast includes William Holden, Franco Nero* (the original Django, and also Vanessa Redgrave's husband), and Paul Smith (the guard in "Midnight Express").
*He and Redgrave met during the production of "Camelot", which I recently saw. Redgrave has long been a supporter of the Palestinian cause, and called attention to their plight while accepting her Oscar for "Julia". Her and Franco Nero's son Carlo directed her in a TV adaptation of Wallace Shawn's politically charged play "The Fever", co-starring Michael Moore and Angelina Jolie. Nero appeared in "Django Unchained" as the guest who knows that the D is silent.
