Can I also point out the way the song seems to follow the political time-line of a war. It could be any war. not just the current middle-east.
At the start, he talks about speaking out and how he's singing this so that more people could possibly add their voices and stop the war from happening. Then he talks about how he can see through all the different lies that the politicians are making and the way they are just using the public and not caring for their reaction beyond their own well being:
"These ------- are laughing their way to the bank and cashing the check
Asking you to have compassion and have some respect"

The second verse then explains that we all know what's going to happen and that it's going to be horrid, yet no-one does anything to help.
"In my living room watching but I am not laughing
Cause when it gets tense I know what might happen
World is cold the bold men take action
Have to react or get blown into fractions"
Then there's a change of scene and we're over in the fighting country, with war atrocities such as the boy dragged under a jeep.
then we've got this line which I've noticed something new:
"Do you see the soldiers they're out today
They brush the dust from bullet proof vests away"
This could be referring to the inadiquacy of the UN, who are meant to go and help yet all they can do is sit and watch and clean their uniforms.
He then goes on to talk again back home, about the effect of war on the family.
"My dad he's got a lot of fear I know
But enough pride inside not to let that show
My brother had a book he would hold with pride
A little red cover with a broken spine"
I'm not 100% certain on this, but I get the feeling that his father has been conscripted or called to service. As for his brother and the quote and the ending I'm completely at a loss. It seems significant but I can't see it personally. I like the current interpretations we've got (not so sure about the Communist thing. even if it is a Karl Marx quote).
"With hands held high into a sky so blue
As the ocean opens up to swallow you"
I think it may have something to do with the general high hopes of everyone crashing. e.g. The politicians hoping to gain something from a war, then losing popular support and gaining nothing.

Finally I want to draw attention to the ending of the two verses:
"1.And the rest of the world watching at the end of the day
In their living room laughing like "what did he say?"
2.And the rest of the world watching at the end of the day
both scared and angry like "what did he say?" "

This is what first made me see it. The change from them innocently laughing and saying "what did he say" as if they didn't believe that he would actually go to war, then they are scared and angry after they've seen the war on TV.

Now, I'm not sayng this is right, as you can see the argument is a bit broken, but I'm just highlighting a new level to people.
criticism welcome.