Yes you would still have money for Salt Lake City because you would have booked the hotels, airfare and venue tickets many months ago and would be planning for it. Going to an Olympiad is not a spur of the moment vacation.
IMHO, Disney competes for vacation dollars every day of every year so there's nothing new there. I believe the 2001 discounts are more the result of the softening economy and declining stock market making people cut back on their vacations as they watch their investments shrink. Disney is not the only ones seeing declines in visitors. Tourism in all the big spots like Las Vegas, Hawaii, Acapulco, etc is down, too. Quite honestly I think the last thing that would affect WDW this year is the Winter Olympics.