Little Green footballs has this item:
I don't see a problem here.
The Lunar calendar makes a complete cycle of the solar calendar every thirty-three years. 2012-(4x33)=1880. The last time it happened that Ramadan coincided with the Olympic games was--when? 1880?
The modern Olympic games began in 1896, if I'm not mistaken. Totally unprecedented, then.
Look at it this way: This is an ideal opportunity to call for a re-schedule every 132 years in honor of the Qur'an and Bedouin culture. Give the Islamic athletes the spotlight every 132 years and lets shift the traditional Olympics schedule. Turn their protest on its head so they must focus like a laser beam on the athletics. Schedule the next event in Baghdad (the 2144 Games).
Or if you think that would be a slippery slope, lets have all the athletes fast and don't shift the schedule. I think it would be very interesting to see what they make of it.
It will also be interesting to see how the average Ali Jihadi on the ground enjoys it as the Ramadan fasting regimen recesses over the next few years into the heat of summer.