I really liked this piece very much, though I'm more interested in the emotional narrative than all the aca/theory. While I did read it as an allegory (as you framed it as such) I was also interested in the personal narrative between the characters (which I read purely as fiction--but agree with you above when you say we tell stories for a reason). In that fiction, I did read hope for something better in Pocahontas's character's yearnings and attempts at connection, something human, irrespective of race ... so I found her ultimate 'transformation' all the more tragic. Whether you believe the historical reality of the story, I think it's interesting that myths of love between coloniser and colonised exist. Here I got a real sense in THIS version of a human connection and longing between both parties to transcend their identities (even if briefly). Their social (political) selves betrayed their personal selves is how I read it. And I agree with hollywoodgrrl that the line you chose as your summary is the most powerful moment in the vid for me.
no subject