The Indian team was playing in a bubble with their performances only in the IPL or series within the Big 3. This bubble was badly exposed when they had to play against the top talented teams like Pakistan. BCCI should need to revise their policy otherwise they will have to face similar situation whenever they will play big tournaments.
The issue i see is that the players were dead tired with too much cricket. More cricket will not help them either, they need to have enough rest and not play series one after other and expect to play at their optimal performance. Pakistan is the best team in the tournament and i was checking their preparation released by them and they have a lot of former players like Vernon Philander, Saqlain Mushtaq helping them prepare which is really great.
They are afraid of losing with their neighboring country and hence they prefer not to play at all.
This is entirely politics and i do not agree with the political agenda, sports should be beyond politics and everyone needs to play.