I missed the third approach. I completely overlooked it. Ironically, this is usually what happens when screen writers or production crew use it. The third approach is doing proper research and getting it right. What's the down side of this? 99.9% of your audience will probably never even notice.
The best example of this is The Matrix Reloaded. If you were paying close attention and knew what you were looking for, you would have noticed that when Trinity hacks into the power plant's computer system, she uses a real-life security tool and exploit. But I bet you didn't.
You can read about it in this poorly researched BBC article:
http://news.bbc.co.uk/1/hi/technology/3039329.stm
Apparently this triggered a warning from The British Computer Society. I have a hard time believing that this is real, but the press release is still available on the Internet Way Back Machine so you can make your own judgements:
http://www.bcs.org/BCS/News/PressReleases/2003/
May/PressReleases2003MayMatrixTricksWarning.htm