To pass judgement on aikido being part of the olympics one has to know what exactly the format will be.
As far as I am aware - and I may be
wrong on a few details - is that the format will be a five or seven person team event.
Aikido has to offer something different to judo to be included and therefore must include embu (kata) as part of the event.
Teams will compete against each other for 3 directly competetive events - tanto avoidance, tanto randori, toshu randori. For tanto and toshu randori competitors must be of the same sex.
The embu involves two players from each team and they will perform alongside each other with a judgement made before the next event. I think the embu will include, randori no kata, goshin no kata first eight (suwari waza, hanza handachi waza), goshin no kata second eight (tachi waza) and possibly the nage no kata. The winning team scores the best out of an odd number of events.
I saw this format demonstrated at the International Tomiki Aikido festival in Brisbane and have tried it myself. I found it very enjoyable whilst suitably taxing.
I think that this format would be an excellent spectator event and place the correct amount of emphasis on kata development. This would prevent degeneration of the overall event and art to the situation judo is now in.
I think Karl is right about the 2008 demonstration deadline, but I believe aikido is competing with kendo for the place in the games.