In the Shodokan/Tomiki Aikido Friendship Games, as they are now called, there are Embu Kata events where an uke/tori pair are judged in manner similar to diving or skating competitions. There is the Kihon Waza (basic 17 techniques allowed in randori) for Yudansha and Mudansha, the Goshin No Kata (core techniques of the self-defence katas and Shodan exam) for Yudansha, Freestyle Kata (techniques culled from all available kata with and some from elsewhere) and occasionally weapons kata. There are a number of criteria that the judges look to in rating the effectivesnes, realization of principles and style of the presentation. It is very cool and informative to see the different approaches and styles the teams bring to it. Also, in VA last summer a new event was introduced that was called the Improv No Kata, Techniques were pulled out of a hat and the teams had less than a full day before presenting them. Great stuff.
As far as the Olympics goes, the last I heard was that if Osaka got the nod in 2008 there was a very good chance that Shodokan Aikido competitions would be on display as demos. There are people for this and those that are, shall we say, more skeptical.