Russia always has much more negative attention from the West than it deserves (even if we take Western values as a point of reference).
Gays are executed in Saudi Arabia - nobody cares.
Gays are not allowed to show and tell something to children - almost "fascism" in Russia :))
OK...

But re terrorism I think the threat is real because for terrosists it is a very tempting target and because Sochi is at North Causasus itself.

Anyway, I do not normally watch TV and I think that any competitive sport is stupid.
TV companies have bought rights to broadcast these events for many millions and of course they now advertise it to ensure that people want to watch it.