As mentioned before, the Harlot is not participating in, coordinating, or promoting any specific knitting activity around the Olympics. She cites her reasons here.
There is some discussion of boycott.
As I've already posted, I've chosen to participate. I enjoy the challenge, I'm looking forward to having an excuse to knit something for myself (instead of samples and designs for other people), and I need some encouragement to tackle steeking and colourwork. Political concerns really aren't foremost in my mind.
I'm not one to shout my politics from the rooftops (although I will sing along at the top of my lungs at a Billy Bragg concert). Perhaps that's good, perhaps that's bad. Do I want to condone human-rights abuses? Of course not.
I choose not to judge anyone's decision about participation, either way. Knit, or not. Crochet, or not. Do what you feel is right for yourself.
There are formal events being organized on Ravelry. I'm not feeling any particular need to get involved that way... I just want to knit.