When Dubai blocked an Israeli tennis player from entering the country preventing her from playing in a tournament that was bad (more at http://www.fanhouse.com/news/main/wta-fines-dubai-organizers-roddick-pulls/353153?bId=&tId=353153&bpId=%2F&sort=3&pg=1). Still, as bad as that was there was a tinge of "this is just another Middle Eastern Arab country taking a shot at Israel". It is bad, but unfortunately not unexpected.
Now Sweden has effectively banned the Israeli Taekwondo Team. They said that 10,000 Muslims members of an organization would try to attack them. Giving in to the mob veto tends to only make it worse. Head over to http://www.mererhetoric.com/archives/11275472.html for more info and videos of some of the earlier mob vetos the police granted them.