Chris, I understand your sentiments and I think that is the case in every Olympic in memory.  Countries and cities promise the IOC huge payouts and extravagant facilities just for the prestige of being host.  It is always at the residence's expense, unless you are a shop owner.

Charlotte, NC, the city near me draws it's share of conventions and sports events.  Officials and the media always talk about the revenue the events bring into the area.  Example is last weeks NRA convention bringing in millions with the 70,000+ attendees.  Who got the millions of bucks?  ... big hotel chains, owners of eateries and pubs not the general public who paid for the convention centers and such.  We get traffic jams, closed streets, drunken, rude foreigners (foreign meaning not locals) and the bill for increased police patrols.  Yay!  

Oh by the way, I think the mascots are lame.  Who picked those anyway?. What with all the UK's history, is there not a mascot identifiable with the locale?