What he said might've seemed a bit extreme, but fans that cheer for the opposition deserve harsh treatment. One can't blame Ganguly for the Kolkatan fan behavior, only those disgraceful fans should be condemned for that. If you can't see that there's anything wrong with such behavior, well, there's no point explaining anything to you. No one here is being rascist when we say something like "those Kolkatan fans". We are not cursing every Bengali in the world by such a statement ... just happens to be that those disgraceful fans who oppose the national team for the sake of one player are a group of Kolkatans in this case.
Now, Ganguly may not deserve his place in the team on cricketing merit, but I think they made the right move in playing Ganguly in this test. If he does well, he deserves his spot and it helps the team. If he does poorly, goodbye Ganguly, no excuses. Now, perhaps they took into account that this is supposedly a batting paradise when inserting Ganguly. If he can't even do well on this pitch, forget it.