a) The transitions thing stands out a lot, but I'd argue that she really is world class. If transitions were the only thing scored (and scored correctly), she would be a contender for gold. Just like how Chan's skating skills tended to dominant discussion, or Takahashi's performance quality. I believe the focus on performing comes from the fact that she is considered a great performer, relative to the history. Mirai's Carmen doesn't stand out as a notable American Lady LP. I'd argue that Osmond's Carmen does stand out as a notable Canadian Lady LP.
b) Ignoring the overhype, basically, Osmond medals if she's exceptionally clean and everyone else is exceptionally.... NOT. But only if the competition makes the specific type of point-losing errors (popping jumps, combination errors, downgrades) that make up for the PCS gap she'll have to overcome.
c) But gold medalists have poor competitions sometimes - Asada's a two time World champion, and she hasn't made the top five since she last won Worlds (and Osmond's score at Nebelhorn beats Asada score at the 2012 Worlds). The reigning silver medalist is Alena Leonova. Carolina Kostner won silver in 2008 (who was beaten by senior debutante.... Alena Leonova). But it would take four of six skaters (Kim, Kostner, Asada, Suzuki, Wagner, and Korpi) having poor skates for her to make the podium. Anyone rooting for an event like that must hate figure skating, frankly. I'll be honest, if it's an awesome competition and she skates well but doesn't make the top ten (ie, no two spots), I think I'd be okay with it (provided that China and France do have two spots - I really want to see Zijun Li/Kexin Xhang and Yretha Silethe/Mae Berenice Maete at Sochi) - it's not as if I really want to see Daleman/Chartrand etc at the Olympics, you know?
c) That said, if she does somehow earn the silver medal (or yegads, Gold) and gets Canada three spots, I will laugh so hard.
Don't dispute the transitions. In fact, I'd agree they're pretty awesome. I particularly like them in the short program because it seems that she's dancing into the jumps. They are solid in the FS, but not as integral as the SP.
I agree regarding points b & c. A lot of skaters would have to screw up and yes if that happen, that would be pretty awesome. And I also agree that I would love to see Zijun/Kexin and Yretha/Mae Bernice at Sochi.