It would be nice if the journalist (and commenters) didn’t over-simplify something to make a point. The disallowed words are ludicrous, but slightly less so than everyone here thinks. From the brand guidelines:
You can’t use two of the words from List A, OR one word in List A and one or more from List B.
List A: Games, Two Thousand and Twelve, 2012, Twenty-Twelve
List B: London, medals, sponsors, summer, gold, silver, bronze
Also, this is described in the guideilnes as “a helpful guide”, not the law. p.9 of this PDF: http://www.london2012.com/documents/brand-guidelines/guidelines-for-business-use.pdf