Yes, we _know_ it's not going to fix a flawed education system. There's not a person in this entire country who has ever believed otherwise, and using it as a critique of the program has been nothing but a strawman.
We live a in a world where everything is done online. If the only objective this achieved is that kids are now familiar with a computer without having learned anything else, it's still fantastically successful. They know how to load a spreadsheet. They know basic UI paradigms that allow them to navigate crappy government or banking web pages. They come of age using social networks that they will be able to leverage for work and productive connections in the future.
The issue of connectivity is related but ultimately a distraction too, as a single poor wi-fi or 3G connection is still good for watching low-quality Youtube videos or reading tutorials.
It's a middle-of-the-road country with inadequate distribution of services. The resources devoted to this program can't be put to infrastructure. And imperfectly devised program where teachers can't use computers doesn't change the fact that computers are so damn useful that you don't depend on a teacher to learn how to use it, especially with naturally resourceful children.