As much as I agree with you that Dark City is also a phenomenal movie, that's not where the brothers got their idea. Dark City was in production at the same time The Matrix was. In fact, The Wachowskis had approached studio execs about their film years prior. The only reason it didn't get produced earlier is that they were rookies, and no studio exec on the planet was going to shell out $60M to them, no matter how good their story was. So they threw together the movie "Bound", proved themselves, and only then got the necessary budget.
Both movies I think will always be in my collection.
Freedom, Wealth, and Peace,
Francis W. Porretto
Visit The Palace Of Reason:
http://palaceofreason.com