Well ofcourse, wont happen in a fortnight, Gilchrist is talking about the coming century. 20/20 in the olympics is a great way to globalize the sport further and secure its place on the world market like soccer. It will excite the masses in parts of the world where cricket is not popular (yet!) and with time, as interest builds up, maybe in 20 years we can get other countries looking at test cricket seriously (wont happen in the US tho). And then - China's plan (and other new nations to test cricket) to defeat India in a test match in a 100 years can become a reality.
I agree with everything you have written. Who wants to play a test match at the Olympics. You stated it would build up the interest but also it would create a big, huge gap between new nations and regular test-playing nations. Which, in time, I suppose would not matter much, as the competition between the Associates will be tough and they will get to play featured matches with regular test-playing nations too.