Certainly Herod was capable of doing such a deed. He had his own children murdered to protect his position, why would he hesitate at killing some Jewish children? Some historians say that the events were not recorded because the number children actually murdered was probably not as great as believed. Others cite Herod's friendship with the "media" of that day. Can we find any analogues in modern day events?
If you're stumped, I refer you over to the excellent Redneck Reflections blog.