Let me premise this by saying that if anybody buys in the GL hype, it's me, because I was one of the biggest pre-draft day proponents of it.
But he has not played well when given the chance, and he is sitting as a result of it. It has nothing to do with where he is from, and everything to do with the job he has done on the ice.
Brent Sutter IS as good of a coach as TSN says. There is a reason he has more consecutive wins than any other Team Canada WJC coach in history (I got this piece of information from the Hockey Canada folks in the Media Centre, so I apologize if it is inaccurate, but considering the source, I highly doubt that's the case). Sutter coaches by a very simple philosophy. If you screw up or play poorly, you don't play.
Andrew Cogliano and Ryan O'Marra have also felt this wrath. And when they came back from their period of benching, they played very well. GL did not. He was given his chance to bounce back and failed to do it. A coach in a single-elimination tournament (which this event now is) simply cannot put players on the ice that have not shown him that they're on their game.