I fully agree with you. Most conflicts are resolved through diplomacy and negotiations and not through the support of contacts. Contracts are usually made for the purpose of keeping nay-sayers and pessimistics sensitivities in mind.
All the points raised by Arvind are worst case scenarios. One does not do business by only concentrating on the worst case scenarios.
I have often admired Arvind's articles. But this one seems entirely biased and motivated. I am truly disappointed, for I did not expect this from Arving.