Sir, I agree with your point that Indian Railways has a moral obligation towards the general public. But owing to the moral obligation, neither Railways, nor the general public is getting benefit. It's the touts, who are making money.
With the dynamic fare scheme now, atleast Indian Railways is getting benefit. Something is better than nothing. Also, we the general public are now getting saved from indulging into something which is illegal.
One more thing, even with such a high fare in dynamic system, the trains are running full and in RAC. So,...
more... I don't think Railway has to worry about pricing vs. demand - supply. You worry about prices, when your shop is not having customers. Here, Railways is getting overburdened with over-patronage. So, I totally want to support Indian Railways in this.
I think with the additional profit, Railways, will be able to improve upon Services and facilities.