Yep- I was thinking about the comparison with the Australian team when I was talking about the Indian situation yesterday. The other thing the ACB did was empower Border as captain and (especially) Simpson as coach to form the team standards, and backed them when they sought to enforce them. As you said, after short term pain it paid off handsomely.Australia had to do much the same in the mid-80s by sticking kids like Steve Waugh, Dean Jones, and Boony in - picked as much for their perceived character/mental toughness as their cricketing talent. They got hammered for a couple of years, but grew into the nucleus of the team that won a world cup, regained the Ashes, and went a long way down the road of becoming the best team in the world. India has the talent there - the problem seems to me to be getting them the window of opportunity to make it happen.
I think the overwhelming majority of historical cases would show that short-term fixes (ie same team with new coach) or the revivals of the recent past (ie recalling older players who's best days are behind them) doesn't produce sustained success.
There's a lesson in that for the BCCI...