Yeah, that's really stupid. Becky Hammon didn't have an opportunity to make the USA women's basketball team so she went to play for Russia but yet you've got a Japanese diver who was on the American team and several Chinese table tennis players from China on the American team. Also, there was an American basketball player who played for Russia, only on the Men's side and no one made a deal out of that. The whole thing sounds dumb.
About the Phelps/Cavic issue, I'll just say that the touch pads don't lie.