Guys granted this is a very very poor performance but all of you are reading too much in to this.
This is purely an experimental side and MSD and Co, are in the mood to experiment.
For starters on a pitch like this in the WC MSD would never bat first after winning the toss. He loves to chase anyway, and with a pitch offering help to bowlers up front, naturally he would want to chase even more.
The idea here was to give the batsmen a run against a quality seam bowling unit on a difficult wicket.
Second this side, screams experiment more than anything in the world. For starters, Rohit would not be dropped after a 100 in the previous match. India are still trying to see Rahane as an opener, and even in the last match after the loss of the early wicket Rahane was sent up to face the new ball, and in this one they had him open. I suspect that unless Dhawan gets his act together by the end of the series, Rahane and Rohit would be the openers we go with come Feb 15.
Kohli will definitely bat at 3, and sending Rayudu up the order was just to give him some batting in the middle in Aus. Ashwin would not be dropped.
Yes its a poor performance, but its aimed at doing some experiments, and we now know they didn't work particularly well. No need to read too much into the result. Onto the next set of experiments now.
Also on a side note, while I would like Dhawan to succeed, but if he doesn't then I think India should do the sensible thing and replace him with Vijay in the final side. I know the WC side has been announced and I don't really know if (and how) changes can be made to it, but if possible then India should just get Vijay in the side.
Also if the Yuvi news is true, then India would not really have an issue with Rahane then going to open and Yuvi slotting into the middle easily.