There may be something to be said about that, but, without the Olympics you just have the world competitions, and we do that anyway. I don't mind the nationalistic pride, what I do mind is the obvious incompetence of the IOC and the erratic implementation of rules and punishment.
If not for the Olympics, there are many countries that wouldn't be seen on this stage of competition. I, of course, root for Team USA, but it's also nice seeing small countries win and the pride their athletes have in representing them.