Hey folks,
I have a 2004 Indica DLS (4000kms, not even first service yet) and have no regrets about buying her at all. Been driving a 2003 Zen MPFI for a year before the Indica came along.
Now, about what Stratos said in the original post, IMHO there's very little understeer even at high speeds, and the car is incredibly stable... there's a turn on my way to work that I could never take at more than 60 in the Zen without drifting, but in the Indi I've taken it at 100+!!! The car holds the road like nothing I've driven before! Definitely more stable than an Esteem. Consequently braking is also very reassuring and the car always comes to a stop without falling out of line.
Suspension is excellent, to the extent that it fooled my mom sleeping in the backseat into thinking the Blr-Mysore highway had been relaid

Rear 60:40 split seats are an excellent addition. Front seat backrests can be adjusted to be almost perpendicular to the ground, very good for people who need good back support.
NVH has been taken care of very well, with the windows rolled up passengers really can't tell if she's a diesel or not. Starts in half a crank even in miserably cold Ooty during the November rain.
As compared to the Zen, there's hardly any power drop with the A/C switched on. And I'm getting 11-13 in the city, 20+ on highway, with A/C always on.
My experince is, and all Tata car owners I've talked to agree that their customer service is far, far better than Maruti. They're extremely polite, concerned and know how to get a problem solved with minimum fuss. Very comforting.
Problems I've had: 4 punctures in 4k km of tarmac driving...

Goodyear GPS2 165/65 R13... finally switched over to Apollo tubes.
DLS doesn't have a heater... for that you gotta shell out about 40k extra for the DLX... not nice. And SpeedSatya is right, the clutch does have a funny feel to it

Finally, "Cool Factors" (what the Marutiz don't have): 2 cup holders on the glove compartment cover. "Loading light" in the boot so you can see what's in there. Leg space. A tray in the dash specially designed to hold coins so that they don't rattle (WOW!). Tray under the steering column for papers etc. Compartments on the front doors that can hold *novels*, leave alone magazines. Mobile charger socket (no ciggie lighter) relocated to centre console so wires don't get entangled in the gearshift. All this attention to detail is wonderful. Highly recommended.
PS: I believe they've come out with a turbocharged Indica this month (FINALLY!), Indica DLG or something...
Cheers!
oversteer