Movies are entertainment, and for Iran to sue the movie theaters is to defy freedom of speech. I know that it is possible in Iranian culture that freedom of speech is not so much a virtue, but in any international court where such a case would likely to take place, it would be an appreciated value.
Besides, movies are for entertainment, and they are nothing more than that.
Iran is foolish if they think that there is anything to be gained by suing Hollywood. Argo was a relatively accurate retelling of a historic event. If the Iranians do not like that, then maybe they should look in the mirror and think about their actions from the 1980s, that's for sure.
No, I don't believe Iran should sue Hollywood over films like Argo. The film is a director's creative interpretation of an event. Directors take that creative license to do what they see fit with the film. It does not claim to be a documentary exposing the "truth" or anything like that. It is a fictional representation of an event.
Movies are simply entertainment, like Fox News, so there isn't any expectation of telling the truth. Because of this, Iran wouldn't have much of a case against Hollywood. The real problem here is that people allow themselves to be fooled by movies instead of thinking, "Well this is just a movie, I probably shouldn't take this to heart."
While films like Argo may present damaging stereotypes about Iran, suing for a portrayal that isn't outright hate speech sets a dangerous precedent. Free speech should allow people to give their opinions, whether stated outright or through portrayal in a fictional context. This does not, however, prevent others from arguing against that portrayal. We should all make a point to look critically at our entertainment and to protest against unfair portrayals (especially of marginalized groups), but we should not sue except in cases of hate speech inciting violence, libel, etc. When you sue or otherwise attempt to shut down the speech of others, you simply raise the possibility that people who disagree will do the same thing to you.