If we ever wanted a 2nd ave subway or a waterfront redevelopment, the Olympics was the only realistic hope of getting them. We won't be able to fund those projects with city or even state dollars alone - and that's considering the need for new fare hikes and taxes for the subway as it is. Funding provided from the Federal level is the only way of seeing those projects done, and we neither need nor deserve that money without a reason like the Olympics. I think those two projects alone would have been worth the hassle (not to mention the pleasure) of being a host city.
As long as we're quoting the NY Times, I'll mention
today's article that asks if we are even capable of doing anything big or grand here anymore. As for Assemblyman Silver, I saw just as many quotes from him saying things like "They thought they could do this project without me, and they found out they were wrong" as I did sound bites talking about Lower Manhattan. I think it was egos on both sides - Bloomberg and Silver.