Even most IIT grads fall in the category described above in the article.... Curriculum of engineering(Including IIT) in India is such that you don't need to study at all....Just mug up a day before your exams and you are done..... And obviously since you studied for passing the exam you won't remember a word few days after...
Here I think you are slightly off mate. I doubt you got through IIT without studying, or just rote learning before the exam. If it were that easy, darn I (Alongwith every IITian I know) missed the plot! Furthermore, statistically IITians have done reasonably well, in technical or academia, and therefore I'm drawing a (baseless?) causal relation that they did learn something in those years.
Curriculum is so awesome that if you are a Computer Science student , they will teach you fluid mechanics.... Instrumentation and control.... everything apart from Comp science basically... Old professors teaching very basic facts wrong( as was pointed out in sinx/x example) ... and if you are a smart( read very foolish) guy to point their mistakes in class , you are definite to fail that paper....
The curriculum for the first year is common for all the students (And some common courses in second), where we study 'elementary engineering' (And basic mathematics/physics which is built upon in various disciplines). I concur with the logic behind such a setting. Thereafter, if you are a computer science student, you take a _LOT_ of computer science courses. Just to prove my point, please refer to the link http://www.iitk.ac.in/doaa/DOAA/coursesofstudy/Compu-Sc.pdf (Page 3, titled Current Course Structure for B. Tech Students) From the sheet, a student takes atleast 17 CS courses in his 4 years which I think is pretty decent. Regarding the faculty, I'll let you judge from the following http://www.cse.iitk.ac.in/people/faculty.html
For the last comment, about pointing out mistakes, never seen or heard about it happening (It doesn't mean much, I understand). Do you know of any case where a student was failed for similar reasons?