I don't know why anyone should be surprised by these events. It is pretty obvious that the Chinese government intended to use the games a platform to show the economic development of China, however they failed to see that hosting this kind of events is a two way street. You can't simply expect the rest of the world, dissidents included, to go along without an input. Besides, politics have always been present in the games.
In any case, today I came back home from university to find out that "Students for a Free Tibet" had climbed the Golden Gate Bridge and unfurled two big banners. It's beyond me why the Chinese picked San Francisco as one of the stops for the torch relay. SF might be 1/3 Chinese, but many people in the Chinese community are linked to groups opposed to the policies of the People's Republic of China. That might be the reason why the Chinese consulate is actually far away from Chinatown, which happens to be the home of the Taiwanese consulate. Also, they overlooked or ignored the fact that San Francisco is the equivalent of "Demonstration-town, USA." You can bet people will be protesting the torch relay, which explains why the route is sticking to the Embarcadero (waterfront) as opposed of hitting the streets.