Like our Hakim sahib says, piskologically there is an enormous disconnect between the middle class/educated folks in India and the real India. This discrepancy is so huge, that the leaders can be flippant and not give a flying **** about what the middle class thinks, because their strategists (goons) have figured out how to win the elections, which is the bottom line
What AH movement did was to shake this confidence in the super-rich political elites that they can get away with ruling the nation like kings. It gave the one thing to the middle class that it did not have so far: Hope!
Hope is a dangerous thing, especially if you are in no position to deliver anything to the population that is hoping for something. This is why there was browning of pants in the Kangi camp with everyone from the second Queen of India to the local goon on the street. It was an open threat to the only way they know how to make money and stay in power, and through that the only way they know how to live comfortably.
However, the fasting aspect of AHs strategy turned this into a blinking match. Whoever blinks last wins, and the incumbent power has a large advantage there. Congress did just that towards the end. They saw that support for AH was dwindling (i.e. a lot of people were losing hope) and they decided to kill the Bill.
IMHO I think AH movement is dead, the emotion of "hope" is already dead among the people. The anger is there, but hey we lived through far worse time for 200 years of history ruled by one looter or another and large part of our populace were hopeless but did nothing. This ray of hope will also meet the same fate.
The media is making sure whatever hope is remaining is being killed. Look at any of the reports on any newspaper.