Have a look at some of the health problems that come up due to the fact that around 6-700 million people in india defecate openly. http://en.wikipedia.org/wiki/Water_supply_and_sanitation_in_...
"In India there are 700 million people who do not have access to safe and hygienic toilets. The waterborne diseases this causes kill 500,000 children every year, mostly from diarrhea,"
http://www.ctv.ca/CTVNews/Health/20071102/toilet_summit_0711...
While yes the proposed solution does sound complex, it's better to try and make it work than just let the spread of disease continue