Narayana didn't create the system. He is only one of many players and it's not his fault that he is the most successful player.
I too don't agree with the harassment that children are subjected to in the name of coaching, affecting their childhood. But let's look at it in another way. One lower middle class kid suffering for 4-5 years gets into IIT. His, his children's, and his whole family's fortunes are changed forever. I would say that it's not a bad tradeoff. And 90% of the others who did not get into IIT would still get into some other good college.