I saw the replay of the parallel bar routine that was the center of the controversy. The announcers explained that the judges who decide the difficulty level DID set the difficulty level for Yang Tae Young's routine too low. BUT you are only allowed three "presses" max. (That's when they do handstands or hold their arms down by their sides with their legs straight out in front of them.) One of the three HAS to be a press to a handstand, but if you do more than three, it's an automatic two-tenths deduction. Yang Tae Young did a minimum four (five if you count the press with his legs out in front) and they didn't take off. So even if they had started him at the higher difficulty level, THAT would have brought his score down to where it ended up anyway.
I know I'm American and might be biased in this, but I'm also a big one for fair sportsmanship. And, in this case, I say let the medals stand. Paul Hamm's performance beat the pants off the other gymnasts despite the fall on the vault landing. He didn't, after all, bobble any maneuvers or fall off the equipment. The decision is based on overall total points on ALL six pieces of equipment, not one fall and you're out.
And I agree with Porciae about Svetlana Khorkina. Come on, lady! Your own team mates said you come to the gym, put in only what's necessary, and leave...and it showed! So get over yourself. On the other hand, I do think Alexei Nemov was robbed on the highbar. He should have had bronze at the very least. Amazing routine!