The purpose of the story as told, is to tell us who God is, what he is like and what he does under given circumstances; change the story, you change the God.
It’s not the selectivity of events that is the problem, it’s not the special effects, it’s not the limitations of the medium, it is the lying. When we change the characters, the events, what was said and what was done, we are not brilliant story tellers, we are misrepresenting real people, with real lives and real stories.
More important perhaps is that this really isn’t supposed to be the story of people’s lives, but one long story about God through His interactions with many people, nations and the world.
The story can be told accurately and with ease. It is not a hard story to tell accurately; all you have to do is tell what happened while not making up things that didn’t happen. Anyone that’s ever been to Sunday school knows the story can be told in simple ways without messing it up or getting bogged down in heavy “theory” over simple event.
The Bible is, at least in the narrative sense (but not always in the propositional sense) a very simple book. It can be read even by children to great edification. There is no excuse for messing up the story, changing the characters, misrepresenting their internal emotional and psychological states, and so remodeling the God therein.
Someday somebody’s going to write a book about what happened in the Bible that accurately tells the story without losing any of the drama, personal stories or God’s telling us who he is… oh, wait… 🙂