The question is - why do we want TKD in the Olympics, and what do we want people to see? The original hope was that more people would take TKD - but what they see in the Olympics is so far from what is done in most classes as to be meaningless, and has been gone over in numerous threads, most people see Olympic sparring as being less than realistic for self-defense. From that perspective, making forms compulsory for competition might change the public's perspective - but as exile notes, it might also further reduce the amount of TV time that TKD gets, which would certainly not help further the spread of TKD.
If we want people to see what TKD is like for most people (or any other sport, for that matter), then the Olympics is not the venue through which to do so, I don't think. But I don't know what the answer is about how to change that.
The question of why it's an Olympic sport, or how does it benefit us folks who train on the corner of Oak & Main Streets. They're good questions & I'm not sure they do help the Art that many of us desire to teach.
My hope (& it's a reach, I realize) is that Olympic TKD will be a gateway to the kind of TKD that teaches the Art. I realize that way of thinking is a reverse of what, say, gymnastics does. They have every little girl in the gym buying outfits, bags memberships, etc. that say "USA Gymnastics" on them selling the "idea of the Olympics" for each of them. I hope the "glory of Olympic gold" that folks see in TKD on tv, encourages folks to my doorstep (& yours) to learn the Art. However, I think it's more likely that the resurgence of "The Karate Kid" movie will encourage folks who want to learn the Art.