I think it goes against the Olympic spirit to not compete.
I think the badminton is a clear cut case, but what about what Mickael Bourgain did in the cycling road race? Again, he purposely quit the race and was only in it to fulfil a technicality that would let him compete in his favoured race. Personally, I think they should have made him finish.
http://www.reuters.com/london-olympi...ace-rule-farce