The Matrix - philosophy discussions and MAJOR spoilers
Ok here I start -
Oracle was the one who resurrected Smith after his defeat by Neo in the 1st movie - resurrecting him as a virus so powerful that screws up with the system, the Matrix, so bad that no one can stop it. Except of course, Neo. She implanted/discovered Neo's talents and bred him to fight Smith. Why the hassle? as she said, for peace. First, she creates the monster (Smith) and then creates the antidote. None of them now are under the control of the Matrix or Agents. With Smith wreaking havoc, Neo can then be presented as the bargaining chip to the Machines: accept Neo's term and grant the humans a cease-fire, or she lets Smith take over the entire Matrix and cut off the energy supply.
This has gone off several times already - she has tried several Neos before, but this is the first time Smith has ever been granted such an overwhelming power. As stated in Reloaded, 1% of the Matrix inhabitants are not "compatible" and needs to be unplugged. The Machines apparently clueless as to which of these humans are incompatible. They needed to "outsource" this function - ironically, to the resistance. This is why the Machines tolerated the existences of Zions (right, plural). The previous "free" bastions of human resistance were required to house the "resistance" - unplugged minds hacking into the Matrix to free these incompatible souls.
However, once the Machines feel that the resistance has grown too influential and beyond the controls of the in-matrix agents, they attack and raize the cities over and over again. Each time, Oracle would pick one of her 'talents' to become The One, but each of the previous Neos have failed to save their Zions.
After each Zion was broken, a number of survivors were reinserted into the Matrix, where they would serve as seeds for the next Resistance. They (or perhaps their decendants) would somehow wake up from the Matrix (like shown in 2 of the Animatrix shorts - World Record and The Kid's Story), escape the power plant, and start a new civilization, a new Zion, and in turn start the hacking in again. Apparently the Machines have perfected this formula of "balance" over at least several cycles. The last cycle, the last Zion, apparently existed for at least 100 years - and this indeed makes the Matrix far older than previously thought, perhaps well into the 30th century.
Oracle has seen her Saviors fail repeatedly, and decided that a powerful Hero is not enough - for he is bound by his own humanity. There needs to be a villain so powerful that would force the Architect and Neo to ally - or at least stop fighting for a while. The final step to ensure this villain's powerfulness, she lets herself be absorbed by Smith (giving him the powers of prophecies, if you can call it that), but at the same time planted a trojan that would entirely "deinstall" all the Smiths from the Matrix - a trojan that would only work once Smith has totally assimilated the entire Matrix and assimilated the last free mind in the Matrix - Neo. Somehow Neo triggers whatever self-destruct routine Oracle planted in Smith when she allowed herself to be assimilated.
Conclusion: we see that Oracle made the Architect finally capitulates to her terms - no more attacks on Zion and that all the Matrix inhabitants who wish to leave would be allowed to. Those who leave would live a harsh (but independent) lives, those who stay will serve in a mutual, consenting symbiosis with the Machines. Humans finally achieve freedom in directing their choice of life.
The Architect was forced to oblige because Oracle has demonstrated her determination (by sacrificing herself to her own creation) just to see peace endure between humans and machines. In an analogy, she showed up to "play chicken" totally drunk and then ripped off her steering wheel in full view of the Architect . She was willing to sacrifice Neo, Trinity, herself, and all machines and the humans in Zion for the sake of peace - this is something she had never done before even after her loyal continuous support to the resistance - and it worked this time.
She usually only support the Resistance and act as a counterbalance program for the Architect, but she is now taking it further by directly attacking the Matrix inhabitants (by proxy of Smith) and threatens the power supply of the Machines. And while her previous Neos finally only acted as the choosers of survivors (seeds for future resistance), the last Neo is presented as the champion for both humans and machines.
The hero of the final victory was ironically not Neo or any other humans, but Oracle, a program initially written only to bring balance to the Matrix. That was it - thank you for reading. Please feel free to poke any holes in my theories, after all that is how societies achieve balance (pun fully intended)
EDITED for typos
Edited by - Fear Factor on 16-11-2003 17:47:46