Bit of an overreaction, but he's got a point. China is good for big shows and certainly would have had the money to rejuvenate the Olympic brand (remember when people watched the ceremonies to see something spectacular?). But the politics are pretty nightmarish. How many Western politicians would feel themselves obligated to stay home under pressure from their electorates? And that's just the beginning. Imagine if they then chose to invite the rulers of some of their client states instead - second-tier Western leaders sharing the bleachers with the likes of Omar al-Bashir and Kim Jong Il.
And the Chinese state would throw up a security apparatus that is almost ridiculous, and the world press would hate it. Chinese minority activists are media savy, so just imagine what kind of damage a single effective protest could do in front of the world's cameras. Not to forget the controversy we'd see about the whole Chinese sports programme and the doping allegations. China in its own country would - fairly or not - be dealing with this accusation at every turn. Especially if they manage to get a large number of medals. Sour grapes is a specialty of nations used to doing better in the past (I guess we'll hear most about it in Russia, Germany and the US).
I really couldn't imagine the IOC going for this kind of PR train wreck voluntarily.