Haven't seen letters from Iwo Jima, but that movie aside I'd say that Departed was the best film. Excellent acting throughout, and a great story, well directed. The Queen was really disappointing. Decent acting, but the story was so completely lacking in any depth. Babel and Sunshine were both okay, but not best-picture worthy.
I'd actually say that the most deserving movie I saw this year was Children of Men (which got a measly one nomination, in the cinematography category). Absolutely stunning, thought provoking and engaging.
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