Listen, yes there are many issues with this film, but its watchable. I say Falls because it seems to make so many promises to the viewer in the beginning and then Falls as the story unveils. The story could work, but I don't think it does here. Far fetched? Maybe. The story seems like it wants to be about a group of badass guys who kickass to get their job done in the LAPD. But the director Lee Tamahori seems not to understand where he wants to go with this. It feels like the story would last this long yet the script hinders it and therefor makes the story expire shorter then it would normally. What I mean is its two different films. One in the beginning and one at the end. I don't know, seems like that, then again I've always had a issue with Lee. As a Bond fan all I must say is Die Another Day.
More on that on another day.
But
"A hundred die so that a thousand may live." 
the cast is pretty great. I enjoy Nick Nolte's Max Hoover. Chazz Palminteri is always a joy to watch. Jennifer Connelly is...Well Google Mulholland Falls under images, it comes up "Mulholland Falls Jennifer Connelly"... and you will see what I mean. Acting is good, but I feel it tries to be the 1950's then it being the 1950's. L.A. Confidential in my opinion is the 1950's then as opposed to trying to feel like it. L.A also utilizing their characters the right way. Mulholland had Michael Madsen, Chris Penn, Daniel Baldwin for no reason. They needed to be used the right way, not have the viewer ask during the film, "Where are those guys?"...Then at the end, boom! They pop up. If you first state in the beginning of a film these guys as a team are badass and can solve problems, then utilizes them. Let them solve this problem as a team. Perfect example of throwing too many people into a film without utilizing what you promise to the viewer.
L.A. works better in this field.
"She was spectacular, wasn't she?"

Well the two are smilier in many ways. Mulholland Falls came first, L.A. a year later. You will notice there are many times that certain films that come out close together, are the same, story and look wise. The reason this happens a lot in the movie business is during the script selling stage. When you try and sell a script to a studio you sign a piece of paper stating, you will not sue them if they come out with a film like the one you are trying to sell. If the studio passes on the script, they can still make "their own version". You will notice this happening a lot i.e. (2012's) Snow White and the Huntsman/Mirror Mirror or (2006's) The Prestige/The Illusionist.

So maybe L.A. Confidential and Mulholland Falls took part in this stage of Hollywood, not sure maybe they didn't, thou I find it hard to believe...I pick L.A. Confidential.

Why?

Better Story.

Better Acting.

and it looks and feel's that of the 1950's.