The objective has been met

警方：展示旗幟勿帶挑釁性 (明報) 04月 29日 星期二 03:05PM http://hk.news.yahoo.com/080429/12/2t7mg.html

警方表示，若聖火傳遞當日，示威者若展示一些旗幟，警方會視乎其行為是否帶有挑釁性，是否破壞公眾秩序。

警務處公共關係科總警司吳家聲被問到若有示威者展示雪山獅子旗，警方是否會採取拘捕行動時，他說，警方會視乎有關的行動是否有破壞公眾秩序，是否有挑釁性，以及公眾的反應才作決定。

而民政事務局常任秘書長尤曾家麗就說，香港並沒有具體法例表明不可以展示什麼旗幟，又強調，香港有言論自由，但希望示威者克制。

Well - even if - at last after the prosecution it is found that the petitioner didn't break and laws of Hong Kong and if (s)he is then released and not being charged, the objective of not allowing those opposite opinions being shown on TV / before the Olympic torch has been met.

Even if later the police is charged of abusing the power, so?

Hong Kong Police covering up 火炬護衛手?

港警察會穿火炬護衛手制服 (明報) 04月 29日 星期二 02:35PM

警方說，聖火傳遞當日，最貼近火炬手作保護的本港警察，會穿上火炬護衛手的藍色制服。
警察公共關係科表示，火炬手的保安工作，會由香港全權負責，而按中國奧委會的要求，最貼近火炬手的數名香港警察，將會穿上內地火炬護衛手的藍白色制服，和內地火炬護衛手的分別，是內地護衛手會戴上棒球帽，港警則不會。

http://hk.news.yahoo.com/080429/12/2t7js.html

Although there is a 'difference' between the Mainland's torch protection team and Hong Kong Police, I think its very possible that HK Police is afraid that in case the Mainland's team is doing too much which might violate HK laws, they could claim that those are Hong Kong Police, at least to the foreign press.