Isn't the Oracle and I wonder who she is.

>So
>the dancing/music/sex scense is merely a collage of humanity
>- it did go a bit too long, but I understand its placement
>and appreciate it.

Ditto.

>2) If this was merely the 6th cycle, then would not there
>have already been 5 Agent Smiths that developed the
>multiplicity power? And wouldnt they already be running
>around? Being an Agent, wouldn't Smith know that would
>happen to him? Or does Everything reset after each cycle?

I think the latter.

>3. If that happened(the complete reset), then wouldn't the
>Oracle be a mere program(performing the same task over and
>over, like the key master) and not the "mother of the
>matrix?" And since the Oracle predicted that Trinity would
>love Neo - and none of the previous "Ones" felt the
>love...then who decided that Neo and Trinity would love, and
>thus "end" the cycle?

Choice. The purpose was there with every generation but choice is what the machines could not bank on. Thus, they reset the program and let the other Neos choose to see what would happen. This latest generation of Neo chose love and transcendence.

>4. Why did "Smith/Bane?" cut his hand and then just simply
>tell Neo "oh...good luck."

Agent Smith hates humans, he hates their smell and so on so I think the cutting was like defacing what he hates. Also, I think planned to kill but then decided to bide his time and do something bigger.

>5. The race representations. Every Agent, the French Guy and
>The Architect are white guys. Every program that helps the
>humans is a minority: Oracle, her guardian and the Key
>Master. Zion is filled with minorities: Lock is the
>commander, the head of the Council was a woman...
>
>The only "bad guy" that wasn't white was the one Asian dude
>that had the shield and sword at the restaurant.

Who created this postmodern world that destroys everything human? What oppressed group still has some kind of moral authority? The race/gender issue is purposeful and telling.

>6. What was the point of Cypher in the original movie, if
>the Machines could just burrow to Zion and destroy it with
>ease? Why bother? It would seem like they could have just as
>easily kidnapped Morpheus without Cypher, thus leading to
>Neo's realization that he is the one?

From the scene with The Architect I think all the Neos was a experiment to see if they could predict "choice".