Yes, the infrastructure is lacking. Yes, there are problems. But Sochi is one of the biggest resort towns in Russia, there's no way they cannot offer the level of comfort all those haters are expecting. I understand the athletes complaining, but not the media personnel and tourists.
They probably have booked the cheapest hotels in town to save some money (because, really, who gives a crap about the Winter Olympics) and are acting all surprised when things start turning to shit.