Is Indiana Jones bad for archeology? Is Boston Legal bad for law, or perhaps Brothers and Sisters inappropriate considering that is a presidential nominee on the program? No! Was the Scorpion King, starring the Rock bad for archeology? No! Absolutely not.
Indiana Jones is a fictional character! We know Harrison Ford doesn't have credentials in archaeology. He is an actor. George Lucas didn't discover King Tut's tomb. He is a director.
To make the argument that Indiana Jones in bad for archeology is in my opinion a bit highbrow. It's placing much too much importance on a fun loving fictional character that people have fallen in love with over the years. Instead of looking for flaws, either enjoy the movie for the fluff and adventure that it is, or turn the channel to Discovery or PBS. People that are interested in archeology know the difference, as does the general population.
I think everyone that has watched Indiana Jones films understands that these are fiction and their inception is intended to provide entertainment. People know that a huge boulder chasing Harrison Ford in a mystical temple isn't for real.
If anything, I think fun loving movies such as this offer people a bit of general knowledge that they may now know or understand. Indiana Jones was the first time I had ever heard of the chalice that Christ drank from. Honestly, I learned more about the story when I read another fictional book called The Da Vinci Code. Do I take either story as fact, no I do not, but it raises interesting questions.
Hollywood is supposed to take stories, myths, and exciting adventures and put them on the big screen. Even stories that are supposed to be true to life are often glamorized for entertainment value. Gone with the Wind was a beautiful story but I'm sure historians will find fault with it's story lines and plots.
Harry Potter are excellent books and fine movies, however it in no way has any bearing on Wicken, which is the religion practiced by witches. Everyone understands that Voldermort is fictional and witches don't fly around on brooms playing quidditch.
In conclusion, is Indiana Jones bad for archeology? Absolutely not. Indiana Jones movies are nothing more than that...movies.