Ummm.
Yuck.
The End.
No seriously, apparently it does not look so bad in its other colours, which will be used in a one-time cycle as time draws closer to the actual games taking place in 2012. Lord Coe (ex-runner, now Tory ego) announced the decision to use the logo, which cost 400,000 pounds, in a glitzy ceremony.
Unlike many previous Olympics, this logo does not feature any famous land marks of the host city, though obviously the Olympic rings are contained with the 0 of the 2012 date.