"Iran objects to the logo for the 2012 London Olympics."
I can see how someone might object to the logo on the grounds that it is fairly uninspiring (some might even say heinous), design-wise*... but I think you have to go out of your way to see what they see in it.
And honestly, does anyone except for the Iranians themselves really care whether they compete in any given Olympic games? Actually... I don't care if any country wants to boycott them. Boycott away!
*It goes nicely with the weird mascots!