Your article titled "Common Sense Not from B-schools" does not represent a full picture of Indian B-schools.
I agree that work experience teaches you a lot of things , but it also makes a person lax and forbids him in trying new ideas.. In most companies the middle and upper management try to do the same thing over and over again.. It is the mind of a fresh, newly appointed grad that drives innovation in a company..
And that is where the MBA grads of today fit in. An MBA degree teaches you how to structure your thougts so that your ideas can yield optimum business results..
Finally yes "People Management" is perhaps the most important thing, but you can't expect an MBA degree to teach you that, it comes from within...