When you're competing to 1/5ths of a second of something you're no longer an athlete, you're a machine with millions of dollars of investment riding behind you.
The Olympics is no longer about human endurance and human achievement, it's about who has access to the latest gadgetry that help eek out that 1/5th of a second to beat a competitor who has a slightly lesser degree of technology and innovation riding behind them. Seriously, when you compare the Olympics of the 1970's and the Olympics of today they're two completely different sideshows.
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That really depends on the sport. IMHO, team vs team sports are still a very level playing field, rarely does one country have a huge advantage because of the 'latest gadgetry'. Granted, for some of the speed based sports, that may make a difference, but I don't think anyone is arguing that Canadian runners have a technology disadvantage or advantage to Jamaican runners.
Skill and talent > gadgetry and equipment, especially at the level of sports that are the Olympics. Sure, records keep falling, partially due to better equipment, but athletes aren't competing vs the past, they are competing vs other countries and athletes in the present, so the playing field is quite level.