There is a slight difference between the Arnold and the Olympia is that the Olympia has a bit more press and the Weider enterprise attached to it.
The Arnold is big and has a lot of meaning to hardcore bodybuilding fans(maybe even more than the Olympia at this point), but after the contest, it's more or less done. The slight mainstream press it receives leaves, and that is that. Also, the Arnold has become more of a general fitness show in the last few years, so folks aren't as critical.
The Olympia is Bodybuilding, and by extension, Weider Bodybuilding. By letting him have the Olympia, Weider takes on whatever extra stigma is attached to Kai. Kai gets the Weider covers, promotions, whatever little press the Olympia gets has Kai's picture attached to it. Anyone coming into the sport that is new suddenly sees that seedy side of the sport laid bare, and in some folk's eyes Weider supporting it by allowing Kai the top seat in bodybuilding.
Much better to allow Phil Heath, the charming all american ex ball player to have it. Meanwhile you give Kai 2-3rd placements and get all the old fans interested again.