I don't know what I think is the best filmed Merchant, but the Complete BBC version does at least have the most interesting Shylock. I agree that don't think the story works if Shylock is treated as a hero who's justified in his actions, but I think he can still be tragic in some sense and have the story work, if you're willing to lean into how uncomfortable and messy that makes everything. Maybe that's no longer properly tragic?
Do you like any of the other filmed versions? I haven't seen the earlier Globe version, I think you said that one was good, right? I thought the Olivier and Trevor Nunn versions were pretty good.
I didn't like the Pacino version. He's not good in it, and in addition to the other problems, it's swamped in attempts to show authentic Renaissance Italy, which just ends up being distracting.