Munich is Spielberg at his most morally complex and it's one of his most underappreciated films
On the specific difficulty of adapting literary fiction and why most adaptations fail.
The problem with adapting literary fiction is not fidelity. The problem is that the things that make a novel a novel — interiority, duration, the accumulation of detail over hundreds of pages — are the things that cinema is worst equipped to represent.
A good adaptation is not a faithful adaptation. It's a translation: taking what the source material achieves in its own medium and finding a cinematic equivalent that achieves the same effect by completely different means. The Great Gatsby has been adapted many times; what it has never been adapted into is a film that achieves what Fitzgerald achieved, which is the simultaneous saturation and critique of a particular American dream.
The adaptations that work tend to find the cinematic core of a novel — the image or dynamic that is most translatable — and build outward from that. Jane Campion's The Piano is, technically, original material, but it understands what literary adaptation requires: finding the thing in the story that can only be expressed through the specific capabilities of cinema.
Sidney Lumet said that a film is good when you can't imagine it in any other form. That's the standard.