http://www.velonews.com/article/73063
I found this article concerning what the UCI can do and here's a pick from it:
"Specifically, Gibbs points to a rule (12.1.004 for those keeping score) that applies to "anyone who behaves in an incorrect or dishonest fashion with regard to any other, or who fails to keep a promise or to meet contractual or other obligations in the domain of cycling."
That rule allows the UCI president to impose penalties "such as” exclusion from the world championships, continental championships or the Olympics."
So based on this it seems that the riders could be banned from the Olympics. But then we come to the problem who to ban
It's going to be fun to watch the TT and the RR with continental teams and Astana (which by coincidence didn't take part in the P-N). That really would be a farce 
Edit: ACTUALLY I would probably be more keen to watch the Olympics if the doped-to-the-gills pros weren't there (including Astana). But then you never know whether the continental riders dope or not.
I found this article concerning what the UCI can do and here's a pick from it:
"Specifically, Gibbs points to a rule (12.1.004 for those keeping score) that applies to "anyone who behaves in an incorrect or dishonest fashion with regard to any other, or who fails to keep a promise or to meet contractual or other obligations in the domain of cycling."
That rule allows the UCI president to impose penalties "such as” exclusion from the world championships, continental championships or the Olympics."
So based on this it seems that the riders could be banned from the Olympics. But then we come to the problem who to ban
Edit: ACTUALLY I would probably be more keen to watch the Olympics if the doped-to-the-gills pros weren't there (including Astana). But then you never know whether the continental riders dope or not.