While the mainstream media does this, some news outlets are very aware of the issues. I'll admit I tend to avoid the shallow, stage-managed news, media.
For mine, the Olympic movement as a whole has done it's image a lot of harm by choosing this year's host nation. What amazes me is that the IOC will boldly declare that politics has no place in the Olympics, when it's pretty obvious that China's reason for wanting to host the games is political gain. Regardless of what you might think of the controversies surrounding the PRC government, the IOC has dragged itself into those controversies - and has noone to blame but itself for politics hanging over this year's games.