I haven't played Command & Conquer: Generals myself, but from what I've heard so far, I don't want to. It is more than questionable, especially in the current geopolitical situation. If you play the terrorists, one mission has you fighting civilians for UN food supplies. If you finish the terrorist campaign, you see a missile, armed with a chemical payload, take off and strike an unnamed city, covering it in toxic green smoke.
Sounds like fun... yet people get worked up over Grand Theft Auto III, a game about an average guy trying to make his way in the world. Aren't both games about the American Dream?