Not to get political, but IMHO if it's up to government to equip a country to host the Olympics, it's not going to work. You do need a certain amount of infrastructure to support an undertaking like that, but it goes far beyond what government can do. There has to be some level of free enterprise it seems. Government can't build hotels, restaraunts, and all the other things necessary to support the millions of dollars people will spend to come to the games. At the same time, local and federal governments have always put large amounts of money into these types of things to get the games into their country. Atlanta spents gobs of money in 96 to prepare for the games. But that money was easily recuperated in revenue. Still, Atlanta had a lot of infrastructure in place before this to make their task doable. Same goes for Vancouver or Beijing.
I'm sure living right there, it's perhaps easy to see a lot of the things that were wrong about the Olympics. I think you're making too much of it though personally. For the rest of the world, they just got to see the Olympics broadcast from a beautiful part of the world that they might not have been exposed to before. I think it was all positive. No one is going to hold a competitive spirit against Canada. You play to win.