Tom O'Neil at the Gold Derby blog still sees some controversy, though. He points out that The Diving Bell and the Butterfly, which the AFI included this year, was primarily an American production (from Kennedy/Marshall Co. and American director Julian Schnabel) yet had seven foreign partners, while Atonment (directed by a Brit) was also produced by an American company (Relativity Media) and had two foreign partners. I'd add that The Diving Bell is no more "incontrovertibly American" in its subject matter than Atonement -- or even Ratatouille for that matter. While I'm not arguing that Atonement deserved to make the list, I'd assume American Gangster would deserve it more than The Diving Bell, regardless of how much better the latter film may be. At least comedy fans should be happy with the inclusion of Knocked Up, which has so far been left out of most awards season honors.
The complete list is as follows: Knocked Up; Juno; Before the Devil Knows You're Dead; No Country for Old Men; There Will Be Blood; Into the Wild; Ratatouille; The Savages; Michael Clayton; The Diving Bell and the Butterfly.