Seth makes a great point as to the power of a logo being created by the brand and not by the design of the logo. A well designed logo doesn't matter if you have a poor brand, and you don't need to spend huge amounts of resource on logo design, when working on your brand will do the trick. Seth mentions Apple, Nike and Starbuck's. I was thinking of how simple the BMW logo is. Just a simple propeller logo from pre WWII. The brand is not made by their simple logo, but by the quality of their product and service. That's their brand.
London has established their brand, and this logo does nothing but distract you from it.
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Unfortunately, the logo was so expensive, it's hard for me to look past the fact that it's really not that amazing. I like the idea behind the logo; they were trying to do something different than has ever been done before with the Olympic logo. It's not the simplicity that's offensive. You could hardly compare this logo to that of BMW's, which actually has a history (I won't go into it, but the symbol is actually that of a plane's nose blade revolving). It's that it's just so, well, blah. It reflects nothing of the UK, or British culture.
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