Unfortunately, as you do not know me in the real world, I cannot really substantiate my claims or refute the points you make. If my ability to apply things in real life and actually do something with the knowledge I have is in question, perhaps this can serve as an indicator:
I just gave the CAT (Common Aptitude Test), which all aspiring MBA's have to give in India for admission into the IIM's and other institutions. I stand in the top 2 percentile of all the people who gave that exam (more than 150,000 this year, I think). I stand a decent chance of getting into a college whose acceptance rate is greater than 500:1.
I'm probably going to finish at the top of my class studying Electrical and Electronics Engineering. I have been doing research projects with my professors since the first year of college in computer graphics and mathematics, although with limited success. Throughout my academic life, I have been in the top one or two percent of students I have ever compteted with. I could go on.
I don't know if all that makes any difference at all our current argument, but I seriously think that you've missed my point. It's not about 'not doing' or not applying your knowledge.
In India, the academic situation is such that you're competing since you're in the 10th grade, and the competition is not very pretty (in fact because of the number of student suicides, several significant changes have been made to the educaiton system in the near past). So, as far as applying my knowledge and my understanding of psychology (more practical than theoretical) is concerned, I'm not really out in the woods.
Perhaps it also has to do with the eastern take on philosophy, which I believe is much more holistic than the western perspective (if you're from the western world). There are concepts like maya and karma that we use to understand the world, which if taken out of context seem like they encourage procrastination of the highest (or lowest) form, but they encourage, in fact, the exact opposite sentiment.