(haven't read the whole topic, since most of it is just repetition)
I think this is more of a long term setup thing than something that will happen in the next few weeks, or even months, just because of how difficult it would be to make fair and interesting.
I like the idea, and have a suggestion of format.
Have a list of events, at least 24 different ones. They can be similar, such as one is no token combat and the another battle royal (CBT Events); while another is public debate (with judges decided each time the "olympics" comes up) and another a riddle contest (LGC Events); and others such as build a boat, or a hunting contest (RP Events).
The kings have each a team of 3 champions, that cannot be changed for each "olympics". Once chosen and announced, that is the decided team until the next olympics.
Each champion can only participate in up to three events.
The kings then take it in turns to choose one event at a time from the list, and a champion from their 3 for that even. The king choosing the event chooses his king first. This allows the event chooser to have a strategy, but also allows the other kings a better chance to be able to counter it, for fairness.
For example: King [X] chooses event [4] and his champion, King [W] then chooses his champion, then King [Z], then King [Y]. After this event is held, the next event is selected by the next king, and champions are selected again.
The order of event selection would need to be decided before each "olympics", and be different for each one.
Every king would get two turns to select an event, for a total of 8 events each "olympics".
Events that where used in the previous two "olympics" can-not be chosen that "olympics". This means that after the first two, there will always be a changing list of 12 events to choose from.
Additionally, if an event is changed for another, then it takes the status of the old event. ie, if the event it is replacing was played last "olympic" then it will not be available for this or the next "olympics".
Time wise, I would suggest that the "olympics" start 6 months apart.
This format would allow for a lot of strategy, not just brute strength. You need to choose champions who are good at all likely events, choose events that your champions should have an edge in (for example, in a ship building contest, Cryxus would have an edge over Jonn, but Udgard as a crafter of Wood would have an advantage over Cryxus), and consider the games you will be leaving available for the next set of "olympics", and decide how you will allocate your champions since two will fight 3 events, and the third will fight 2.
As far as who can participate, while I would like the non-main lands to be able to participate, I think that until they have a single person that they are willing to unify under, even if just for this event, that they should not be allowed to. While there are advantages to joining a mainland (WP codes for quests, alliance support, etc) at current they are more conveniences that major advantages or events. I think that the "olympics" should be a Kings privileged event, and as such would need to be organized and run by the kings.
[b]EDIT[/b]: Pip made a post while I was typing, and reminded me of a few things I forgot to include but did think of (thankyou Pip)
Champions selected for an "olympics", much like the events, can't be selected for the next two "olympics".
Reward for the winning team of the "olympics" is a wishpoint for each of the champions. (champion [1] gets WP from king [X], [2] from [Y], [3] from [Z], for example, so it is one wishpoint from each loosing king)