The actions you describe are indeed sad to hear. Of course Muslims should not watch such movies; as for boycotting and banning, if it has broken the law, then I am sure the authorities will enforce that.
The Muslims should write and make representations to the authorities and the actress involved about their disapproval of this kind of portrayal.
Islam is not damaged by this, and there is no depravity in Islam or in Islamic Fiqh. Those who would like to misrepresent it to others should be exposed through legal channels.