The Chinese have leaders live old and grow wise. However, their generation was the WWII generation and saving face for them is still very much a reality to these men. Tawian is such an issue and if the games are boycotted, they will simply accelerate their option toi move on Taiwan to save face. Considering the Chinese got pretty much all they wanted out of the U.S. (and we recently took some back) I do not see they would feel too intimidated by the West at this moment if they did move on Taiwan in the next couple of years. Just my take...
you take is probably valid. one wishe4s that the chinese leadership will wise up and revert to the wiser old days. it must be very expensive to keep after Tibat and Taiwan in terms of manpower and treasure.
should china decide to do the right thing adn let them go, their esteem in world leadership circles would rise dramatically. that would increase people wanting to do business with them, and their own self respect.
but, alas, they won’t do such a thing - gotta save face doncha know. so the lousy olympics is the most important to them.