Why We Fight

I've been thinking about the documentary by Frank Capra that we watched in class today. In no particular order:
(1) We forget sometimes the propaganda that our country engages in. We think of "propaganda" as a peculiar element of Soviet countries and other enemies of the state, but we churned out one-sided media just as readily. The difference of course is that the free market makes room for more than just the propaganda, whereas the closed market disseminates only state approved messages.
(2) It's amazing how transparent the propaganda is to our savvy 21st century eyes. It makes me wonder what I am accepting as unbiased today that future generations will giggle at.
(3) All those Biblical references in a film produced by the Department of War and intended for Army use - wouldn't see that today. I liked it.
(4) The narrator (Walter Huston) at times sounded like Burl Ives in Rudolph the Red-Nosed Reindeer.
(5) Speaking of Hollywood and WWII, I've been meaning for some time to track down a book about the Hollywood prop masters who fooled the enemy into believing in the existence of entire brigades that were entirely fabricated.

What questions do I have?
(1) Is propaganda an appropriate tool for a democracy to use?
(2) During war, does the media have an obligation to cooperate with its government or is its responsibility to scrutinize it even more carefully?

(1) I think that propaganda is usually not terribly useful, as it seems that anything published by the government is immediately suspect. What about items covertly published by the government? It may be that the internet may ferret some of these out, but overall I suppose the intent must be scrutinized. A democratic government should not be in the business of duping its own people. However, propaganda targeted at foreign allies, neutrals, and enemies, I suspect may be of value.