...but bemoaning the damage done by this war to the sanctity of the Olympics, and hoping that the threat of being kicked out of the Olympics would deter future wars, seems to trivalize war and aggrandize the Olympics.
You are right as of today.
However, as automation increases and our species works less, sports and other leisure activities are gaining real importance.
Being kicked out from the Olympics is not that important yet, but being kicked out from the soccer world's could trigger revolutions or make a difference during elections in many countries, including some rather important ones. Also, some governments (usually those in need of political support) offer money prizes for each olympic medal won, so politicians believe the games are not irrelevant.
If you think about it, sports come from being completely irrelevant 150 years ago, so the trend is clearly towards the scenario Rolf depicted.