The true picture of India's Internet market and scope for Web2.0 Part 1

Even though i am sick of all the invitations to social networks like yaari,Minglebox and now desimartini that lands in my mailbox or on Orkut scraps i firmly believe that amongst these websites lies India's future Internet star this despite the fact that so many are warning against betting on web2.0 in India. let me first highlight the opinions of others who are pretty pessimistic in their opinions
First of all Avinash Bajaj said here that Web 2.0 is not for India
Jaspreet Bindra Head of MSN says here that Romania's market would be bigger than india's
iLeher paints a very pessimistic picture saying that target market is just 8 MN(pretty good i would say)
AcNielson report which says that word of mouth is big influence in India compared to searching on Internet in USA (All the more scope for buzz Marketing any takers)
Even at Webyantra people tend to believe that Web2.0 is more hype than substance
Listening to all these people made even me sceptical for once but truth remains quite different and in my next post i describe why Web2.0 will happen in India despite the sceptism and i will also highlight the success stories in India
Updates: Part 2
Part 3