Internet penetration is 10x better than it was 2 
  years ago with wire-less broadband devices and with 
  so many cell-phones around, almost everyone I know 
  "at least" has a GPRS.

I agree it's better than two years ago. However, I'm not sure it's good enough to warrant moving out of a big city to start a company.

  Electricity is getting better but till then 
  power back-up ftw!

From what I've heard from my friends many villages have between two to four hours of power a day. So, UPS backup isn't going to fly. If you use a generator, you have to put up with the noise, not to mention the additional cost.

  I find it strange bootstrapping startups 
  complaining about environment, looks like 
  someone wants to be mouth-fed.

The OP suggested that entrepreneurs were moving to the countryside. I just asked whether that's feasible. I think this snide remark was uncalled for.

I also submit that not having to worry about electricity and broadband is worth more than you think.