Yes, exactly, only two Olympic spots max per nation/MA - so that should expose the lie about what the official claimed whoever he/she is. True as well, Li Yongbo has not long ago already announced the two CHN MS candidates for the Olympic selection, unlike the other disciplines, such as WS, where he has to choose two out of three.
What's more, no way would Lin Dan want to help THW or XS to get close to him in WR and the R2R, it's like shooting his own foot.
As for Lin Dan apparently not trying hard to beat XS, my take is 1) he's tired and there's one more round, the final, to go (and this match was before THW took on HKV, therefore the outcome wasn't known beforehand);
2) LD knows XS' game inside out and he's confident he can beat XS somehow, added to the fact that XS was already stretched by two previous tough,long matches;
3) LD might have originally set his target of a semifinal appearance here at the AE, so having reached his goal, he naturally is inclined to ease off quite a bit;
4) LD dropped the 1st set, why bothered to win the second, irregardless of what happened in the third when (he couldn't possibly have foreseen that XS would suffer a leg cramp) he was gifted the match by XS' leg cramp; and lastly
5), winning against XS meant he's only one step from taking another AE PSS title, moreover, his final opponent is either HKV or teammate THW, neither of whom should pose a big obstacle to him - in other words, there's every incentive for him to go for it, capturing his 6th AE title, consolidating his chances of rising to WR2 as a result, not to mention being one of the very few to win back-to-back tournaments in recent years.
The best part is, winning the PSS gains LD another 11,000 ranking points in addition to the 9,000 he earned from the German Open last week, thereby lessening his pressure to perform well in the few remaining Olympic qualifying events ending on May 1st. Certainly,LD would be wise to make hay while the sun shines.