I don't know how the rest of the world feels about the Olympics, but it has no charm for me whatsoever. The Olympic spirit, so to speak, has been suborned by crass commercialism and political expediency.
China is using the Olympics strictly as a public relations gimmick: to propagandize its achievements; a sort of gaudy coming out party. They want the world to know that China has arrived. So it pains them to see their efforts sullied by silly protests over Tibet. So, in response, China has attacked the Dalai Lama, who has been nothing but supportive of China. China has also attacked the West, the usual standby, for its neocolonial mindset: they can't stand the idea of China succeeding. That old chestnut.
China is on the verge of being a superpower (something it always aspired to be), it has the world's second biggest economy, yet it is offended by harmless protests. It's only going to get worse. China would to like the world to see China strictly on its own terms. Unfortunately, it doesn't work that way. When you put yourself on display like China is doing, the whole world will see everything, good and bad. It's the price of being a superpower. Deal with it.