See George Vecsey's piece in todays NY Times.
Bottom line: the games will likely go on just fine, and that is where the focus should be anyway. But small, lower income countries don't have the infrastructure and can't build it on short notice. Fat cat fans are in for a not so luxurious experience this August.
Footnote: Havana has put in a bid for the 2012 Olympics. Memo to Fidel: how about trying free elections first?