Oh, Olympic hockey is better with the NHL players there. There is little doubt about that. And that benefits the IOC and the host. The big question is does it benefit the NHL enough to shut down their season for three weeks and risk injury to their star players? And from the point of a view of a NHL team fan, the Olympics can be looked as three weeks of exhibition games with made-up teams -- because after all, those games have nothing to do with the NHL team's pursuit of a championship.
Personally, I'd prefer the NHL to stay out of the Olympics. If individual players want to play in the Olympics, they can arrange their NHL deals in such a way that they are not under contract to an NHL team during an Olympic season.
I'm also not a big fan of international hockey. The Summit Series was fun in 1972 and it's been downhill since then. Now, it seems that there is some international tournament going on every couple of months.