It seems like the debate over corruption is morphing into a cartoon battle between Goodies and Baddies, with no-one quite sure which is which and the issues over which they are fighting starting to slip into the background. Much as this latest move by the government looks like an over-reaction, I think a part has been played here by the blunt tactics used by Hazare, which seem to have opened the way for the level of debate to decline to who is prepared to push hardest.
It's not like India has no track record in more productive and innovative ways of tackling the issue. In 2007, an Indian NGO called the 5th Pillar started producing Zero Rupee Notes: a "banknote", made to look similar to the 50 rupee note, with a stated value of zero rupees. The idea was that citizens could present this to officials who solicit bribes as a way to shame them and to "say no to corruption without the fear of facing an encounter with persons in authority."
Clearly this isn't going to root out a problem the scale of India's, but as a means to raise the issue of corruption and to empower ordinary citizens to speak out about it, it's a great initiative and in my view better than trying to browbeat the government by going on hunger strike. This country suffers a lot from corruption. I think its people deserve a better approach to addressing the problem than they are getting.