This news is a surprise, especially seeing as how Collins was just telling people how he had no interest in coaching. The Bulls go from one firey coach who the players stopped listening to another firey coach, so I dunno about this.
Yeah, I'm with you on this one, it's a bit perflexing. If they wanted a coach with a good regular season record, but a so-so playoff, I would think they would go for someone with more recent sucess, like maybe Avery Johnson. Still, Collins is a decent coach and with the talent the team has already plus the #1 pick to choose (most likely Rose), I can see the Bulls becoming a big playoff contender for the forseeable future.
I don't think the Rockets necessarily had a problem with him playing for China in the Olympics. The issue was Yao playing in scores of other international competitions for China in past summers when he could have been resting.