The comparison with china is, IMHO, pretty much apples to oranges.
You are comparing industrialized portions of China with India's countryside (notwithstanding the forced removal of Beijing's slums for the Olympics
http://olympics.scmp.com/Article.aspx?id=1419§ion=in...).
If you need to find fault with the slow pace of reforms, I give you democracy and cite US Health Reforms as an excuse - imagine if you had one billion rather than 300 million to work with.
As India's MoS-Small Scale Industries' Sachin Pilot once put it - "inclusive development vs growth".
Hoping that people will not cheat you at Bangkok's KhaoSan road is a bit too optimistic. Existence of ThornTree and Tripadvisor with their "Tourist Trap" sections is indeed because this is a human, not a regional phenomena.
I'm sad that you wont go back to India because of it - I really wish you had not stayed at Paharganj, but instead stayed somewhere inside Delhi.
I wish you had skipped Taj Mahal altogether and instead taken a walk to Hauz Khas Village, bang in the middle of New Delhi - which completely epitomises India's bohemian kitsch, shopping, food, music along with monuments that predate the Taj Mahal by atleast 300 years. Maybe you could have dropped in to have a cup of coffee at one of the cafe's there that operate on an honor system rather than a bill.
Your tourist trap experience, colored the rest of your viewpoints and I'm truly sad at that.