So, are 3rd level .in's worthless?
Right now, for the most part, yes- however, don't confuse 'worthless' with 'useless'.
If you approach these names from the standpoint of a nickel and dime domain 'speculator' who buys names hoping to resell them for slighty more than he paid, these are going to be losers for you.
However, if you're developing them, they work fine. Also, it's *possible* (not certain, but possible) that they may be worth more in the future, depending on how the internet in India evolves.
Don't view these as fruit; rather, view them as seeds.
I own several 3rd level Indian nets and orgs- mostly pure geos of big Indian cities, but a few others that are sensible to the TLD (Rupees.org.in, etc, etc). I'll probably be holding most for quite some time- trimming a few in the next week, but mostly, these are all long term plays so if you aren't prepared to renew these names for quite some time, I'd suggest not buying them in the first place. Rule of thumb: If you are sincere about speculating on these names over the long haul, then register then for 5 years, right up front.
The biggest wild-card I see in these names is the whole English language thing. The internationalization of domain names is probably going to be a very big deal going forward, especially in places like India. It's entirely possible that English language .in domains become what pin-yin .com's are to the Chinese; outdated gear....
Don't allow the past and the present blind you to the future.