Armenia already has the infustructure to host such a event. I think allowing the three caucasian teams in is a bigger problem. As for the armenian/azeri war i think we are going to see a deal worked out soon.
I think people seriously underestimate the type of infrastructure needed to host such events.
When people hear infrastructure they only think stadiums. Forget the stadiums man how about everything else. 10s of 1000s of people will be pouring into these cities.
You need to build roads to accomodate everybody, you need enough hotel rooms to accomodate everybody. It isn't as simple as it seems.
Greece for example had to borrow billions and billions of dollars to revamp such things for the olympics. One they were able to get financing because people were lending money left and right back then. Today, where will the financing come from when banks and institutions are holding on to their money like a hooker hiding money from her pimp.
Secondly lets assume all three of these countries get the financing to build all this infrastructure then what? Are the economies of these three countries to a point where that country can actually benefit from that infrastructure after the games are over?
Imagine a whole bunch of new posh hotels in Armenia and Azerbaijan that will cost billions to build only to have them empty for an indefinate amount of time after the games are over.
Hosting games is a tricky business few countries can actually pull it off.