If you ask people who are driving a Honda City as to whether they will buy a Nano. The answer is obviously no.
Either way Maruthi Suzuki 800 variants like Alto, WagonR et al. Are pretty good low segment vehicles.
And for Indian roads, traffic and wear and tear. Unless you have surplus money which you wish to waste. Its nonsense to buy an expensive car(For daily uses at least).
Well I have never driven one, I only asked my cousin. But you are right about Indian roads and traffic. If you are going 2km/h with a pothole you can swim in, why do you need an expensive car.