There’s a Wired News article on games about the Arab-Israeli conflict out, in which I am quoted a fair bit.
As I told Quinn Norton, there’s a long history of games that deal with political issues. One of my favorites is Hidden Agenda, which is apparently abandonware today and still playable on a WinXP box. In this game, you take on the role of president of a newly democratic fictional Central American country called Chimerica. It’s dated today, set in the midst of the Cold War, but still packs a massive punch when you play it; trying to juggle the priorities of agrarian reform, free market economics, improved health care and education, and keeping the left and right wings of your populace is still an eye-opening experience.