Although there are real issues of photography in public places, that have been well documented, it really doesn't seem that draconian here. I've done quite a bit of public shooting at events recently (official but not showing ID) and wasn't challenged by anyone.
With regards to the Olympics, I'm sorry to hear about the experience (direct experience?) of the poster above but I went to the sailing in Weymouth and there were stacks of white lenses in the audience and the security were actually really polite and friendly. A friend went to an event in London and said the event was buzzing with a great party atmosphere.
What is true is that there's a cultural predisposition towards complaining and cynicism that's having an awfully hard time keeping up with the fact that the country seems to have pulled off something rather decent - and potentially something rather brilliant.
I applaud the determination of those who continue to moan in the face of this risk of triumph - that there is a true Brit.