My gut feeling is that this recent spike is partly the "lockdown rejection" that we saw across the US last year, in particular stuff like trying to ban alcohol sales in restaurants seemed to have really made a lot of people just kind of give up with the state of emergency recommendations.
And like... there aren't any spectators right? The amount of people at the event is maybe comparable to how many people are at a local supermarket in one day.
Not to defend the gov'ts decision to do the olympics, or any of this thing in general. There will probably not be many real consequences to these people, and people are watching it on TV, but it definitely doesn't feel very "state of emergency" and sets the wrong tone for this moment. It's just that this spike doesn't feel single-factor.