It is, to an extent. Let's not forget that there were quite a few indians who were alright with this characterization, subhas chandra bose etc... But i suppose you can't fault them in a way, they were looking for a way out against the british and needed some source of ethnic pride
as for the singing and dancing.....
I don't have a problem with it. I love that a lot of hindu worship is active, involving, and life affirming. Why should worship be 100% grim and serious. If you are thanking god for existence, why not celebrate it with joy and wonder? I can't really fukk with the Hare Krishna's though. Too many yoga selling new age cornballs in the movement for my taste. It is nice that Hinduism has found vehicles to move outside of India, but not like this
I was raised on the Smarta stuff primarily.... I think hinduism is by nature largely open to interpretation as far as concept of God. The hindus who i have met in my life who approach it from a more intellectual/philosophical perspective generally tend to take the position that god manifests himself in different aspects as deities, and i overall agree with and like that approach most.