I think the luge should go ahead. This is an incredibly dangerous sport, and everything possible should be done to make it as safe as humanly possible. Once that has been done, the event should go ahead.
I completely agree with the posters who suggest that there are too many sports in the Olympics. The original modern games (as in before the Winter Olympics even existed) focused on events that tested the most basic and pure athletic talent. How fast can you run? How high can you jump? How far can you throw? How well do you wrestle?
The proliferation of sports that have little to do with this really degrades the Games, in my opinion. Ice dancing is a joke. I don't know if ballroom dancing is still included, but that's so far beyond ridiculous as a "sport" that's it's not even a joke. Rhythmic gymnastics? Oh please. Synchronized swimming? Synchronized DIVING?!!! These are silly, contrived non-sports that divert attention from the real thing. They may or may not require talent and ability, but they ain't sports.
There are also too many different events within certain sports. Swimming belongs, but there are approximately twice as many events as there should be. The 100 meter swim? The 101 meter swim? The 102.567 meter swim?
There are also far too many skiing events. The classic three alpine events --slalom, giant slalom, and the downhill -- represent the sport completely. In what exact way is "super g" relevant or different? It isn't.
I also would eliminate all judged sports. Yep, including gymnastics, figure skating, boxing, and dudes doin' tricks on snowboards. Any competition that requires judging is not a sport. It's a beauty contest.
Finally, the sports that have mass exposure in other venues should also go. That means tennis and other events that are ubiquitous around the calendar. These sports simply don't need the additional exposure, and the inclusion of them distracts attention from track and field and other classic Olympic events.
I know I'm gonna get slammed for saying these things, but remember, please, that these are only my opinions.