I really think this argument is ridiculous. The sport is huge in Cuba, Venezuela, Dominican Republic, Japan, the U.S., Taiwan, and South Korea. Plus it's popular enough to field competitive teams in Mexico, Canada and others. There are several sports in the Olympics where there's not this global reach and popularity, it's not like American football which is only popular in the U.S. The truth is that it's just not popular in Europe, and Europeans have dominated the leadership at the IOC so they decided to get rid of it.
Well, I'm not saying that is not enough, but there is no doubt baseball is played in fewer nations that any current Olympic sport. The fact that some sports (like river rafting) is not really big in any country (at least as far as I know) is apparently not a concern.
If the US really wanted baseball on the program, though, the least they could do was to field a team strong enough to beat the Cubans. This they managed only once in three attempts from 2000 to 2008, after the amateur requirement was lifted. A few stars might have made a difference to the sport's Olympic future.