Reddit mentions of The Life of Saladin: From the Works of 'Imad ad-Din and Baha' ad-Din (Saqi Essentials)

Your first part is spot-on, your second part is a bit off. The depiction of Saladin in the film is extremely positive because Crusaders had a very positive impression of him for a variety of reasons, putting him into chivalric model they viewed themselves in because Saladin was, by all of the information available on him, an extremely shrewd political mind. Saladin worked to secure a number of treaties with Crusader states that made them quite pleased, which is part of the reason they looked at him so positively.

The chivalric depiction was picked up on by historians like H.A.R. Gibb who, like a great many in the west, really bought into this romantic view of him. While there are sources that aggrandize him into this figure, one must consider where they come from: Baha al-Din's "The Rare and Excellent History of Saladin" comes from an author within the retinue of Saladin who was patronized by him. What do you really expect him to say in such a source?

There are sources to the contrary, though, namely Ibn al-Athir al-Kamil fi’l-ta’rikh which present the opposite side, patronized by a Muslim enemy of Saladin that presents the opposite extreme.

As proves often to be the case, the truth is likely found somewhere in between.