I have a feeling that even if they built, as you said, proper intersections with lights, the people, who mostly drive motorbikes would continue their pattern of driving, anyway. Amazingly enough, there are few accidents.
3. Traffic & intersections in India are about the same.
Signs are posted telling motorists (begging them, really) to 'Obey lanes'... but drivers don't pay any attention, and motorcycle & scooter riders care even less, not to mention motorized rickshaw taxi drivers.
It turns out that chaos works just fine... it's not the absurd intersections that slow traffic most in India, it's the pot-hole ridden roads and the occasional ox-cart or elephant trudging along, occupying real estate that a motorcycle could otherwise zip through...