I was on holiday in India during the demonetization announcement. I think you are espousing the typical middle class Indian's thoughts on this. Frankly, they're the most insular, unsympathetic people I have ever met(many of which are my family members). If as you say, there isn't much of a problem why are there still queues at the banks? Why have people changed their spending habits? And have you actually tried spending a 2000rs note? According to people I know there and from what I saw when I was there, many vendors still won't accept it! Outside malls and hotels, it is almost impossible to spend on card - that will obviously change but in the short term the problems with a cashless society arise.

As for corruption and crime, they have gone up since the announcement! To get large amounts of money deposited into banks, backhanders have been placed. In short, I think this move will turn out to be a disaster and you've got your head in the sand, think of the average man in this scenario.

I wrote about my experiences and the potential problems here:

https://steemit.com/bitcoin/@drkarl/in-the-midst-of-indian-demonetization

A resteem of the article would be nice @dollarvigilante :)