Well the Olympics have not been known to be too picky about host nations unless the US or Soviet Unions were involved.
Hitler got his Olympic triumph and it was an interesting experience, then he started world war II afterward, hehe!
I am Chinese, so it is a happy occasion to have the Olympics in china, beyond the humanitarian difficulties.
If I state my opinion about the Tibetan problem, most of you guys will kill me with effigy, but I will be honest and say that it might not be right to occupy another people's land, but it has been done by everyone and it can not be used to deny someone of equal treatment. If that is the case, the US should have left its territory won from the Spanish American war, cede back California and south-western territories to Mexico, and give about a third of the nation back to native Americans. Further, for Great Britain, they should leave northern Ireland to their own devices sooner and surrender any remaining island possession illicitly gained. No one will do that so quickly without thinking of the ramification that such actions may bring, which is why northern Ireland has not re-unified with Irish republic as quickly. These are problems of the present that have yet to be solved.
If a group of Native American were to have a ghost dance during the salt lake Olympics, it would not mean that a humanitarian problem is occurring in the US. The last time a large scaled anti-occupation ghost dance occurred the US shot and killed dozens of unarmed Native Americans, it was over a century ago, but it still says something about the idea of unjust occupation.
I am not supporting occupation or the idea of might makes right, but it is merely how the world really works. If the world were operating on the principles of sharing and peaceful co-existence, then it would be horrible to allow China to host an Olympic.
Also, I suspect the US and EU along with Russia want the present Chinese government alive and kicking more for their economic needs than the needs of the Chinese people. It is politics to appear hard on China; it is diplomacy and economics that demands a strong backing.
To comment about Xeran, I think there is a duality in principle among Chinese people. Fidelity to the state and the idea of superiors from Confucian doctrines have been taught in the society for over a thousand years. A singular mindset or monarchist ideal of order is stabilizing on their mindset, so communist leaders offer them something they feel safe with. I think stability will have its weaknesses and eventually the population will wise up, but it will take a few years before a true democratic movement can form. The main issue is that once stability is destroyed what will happen to China: Far too likely a disintegration similar to the 1920's with the implementation of democratic movements that could not govern so many.
The true challenge in democratic government is how to keep a unify China with its economic strength that has tied so uniquely to the world economy stable? Theoretical basis is one thing, but if you read up on Chinese history after three thousand years, it is hard to cancel centralized power and remain unified.