In my experience, the worship part is purely theatrical, and is largely the reason stuff like this happens. I'd rather have books treated well for practical purposes than because "Vidya is God" - it makes more sense this way, and you aren't bound to a holy/unreachable ideal.

Feet don't have any use for books, so that doesn't matter much. Book sleeves and brown crafts are because of school rules, else those don't happen. Anyway, you should see how the books within those brown sleeves get by end of school year. Books get handed down in good shape only when a parent is unusually strict about those books (mine were, which is why I have a chip on my shoulder regarding this topic) or if the kid is conscientious. Woe betide you if you loan a book to a random friend; there are good chances it won't come back whole because of the "why-should-I-care-I-don't-own-it" mentality.

Part of it, as you imply, is the cheaper price, and thus quality and binding of the books made in India.