Ooo, I will definitely check out the aforementioned movie and book (am a Chinese history enthusiast).
Even though this thread has veered off on a slight tangent, I cannot help but post my quick two cents worth on Hero.

A hynotic visual spectacle, to be sure, but oh, how emotionally hollow! What a disappointment from an otherwise accomplished director. I just felt it lacked the complexity and intimacy of earlier works such as Raise the Red Lantern.
In terms of political implications, one can only wonder what the Taiwanese can make of it. The moral tone is so egregious that I have to wonder if it is indeed propaganda trumpetting nationalistic fervor? On the other hand, if one considers subversive readings of allegorical undertones, I'd say most would tend towards the obvious and overt message.