.. all hotels were sold out more than a year ago. I have been checking since February 2009. Absolutely no room available.
Absolutely not true. PC released numerous award rooms at HI and HIX about a week or two ahead of the games. 2-3 properties were available on any given night. I traveled to YVR on business during the olympics and had no difficulties booking myself and a colleague on cash and points for $60 + 5000 pts.
SPG forum had posts about good availability at Sheraton Guilford.
Had a look at tripadvisor for Sochi.....looks GRIM..and that's being an optimist! Instead of friendly crowds having a blast I envision armed soldiers on every street corner and surly babushkas manning hotel desks yelling at guests.