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It required them to shut down a lot of industrial production. A temporary pause in production was a reasonable sacrifice for the Olympics. After the games were over, they worked overtime to catch up. Beijingers have lived with it their whole lives, it is normal for them.

They even shutdown many factories temporarily before the games. Guess many are back on.

Also, the city (an many others) grew a lot since 2008. Lots more traffic, heating, etc.

Not defending the government, but the problem has also grown bigger.

They had the Olympics in August, which normally isn't that bad. If you ever want to visit Beijing, come in fall, and avoid winter.