I remember seeing this film when it came out in 1987. (I have the book too).
While I see your point here, I think it perhaps pays dividends to look at this portrayal from the perspective of the time it was released? Perhaps the emphasis on Woods hasn't aged so well, I understand that, but in 1987 it was still years before apartheid ended and the fight was very much on going. There weren't that many white South Africans on the side of the fight for equality and as such Woods is definitely important too, as a role model, as someone who white people might pay attention to. And that applies to viewers of the film in the UK and elsewhere too really. His bravery was real and worth marking and the fact he was willing to stand as a conduit, bringing Biko's story to the world is certainly significant. He wasn't exactly safe from the SA government once out of the country either.
I always greatly admired Steven Biko - and it was this film (and the book) was certainly my jumping off point for finding out more about him. So I'm guessing that happened for others too. The story probably got more (white) people to take the fight against apartheid seriously because it was brought to them by a respected (white) newsman like Woods.