The whole concept of reservation is not only outdated, it reeks of vote bank politics. Consider this: The reason politicians give for having reservations in the first place is to uplift socially-neglected groups. If that is so then why are they using an economic approach rather than a social one?* And if they are trying economic upliftment then why don't they uplift the economically disadvantaged? Why are they targeting the socially backward?
If the policy-makers really wanted to uplift the downtrodden this is how they should have done it:
Instead of focusing on castes, they should focus on the economically-deprived. Because lack of opportunity is what we are trying to take account of. And money is much more a limiting factor (think of books, proper schooling) than caste is. Is there any point in reserving seats for a SC/ST candidate who's dad is an IAS officer? How about a brahmin who's dad sells vegetables?
Also seats should not be "reserved" for any group. What should be done is take into account the lack of opportunities a person has based on his family's income and increase his score by a percentage based on how low his family's income is. This way we ensure that meritocracy doesn't suffer because the increase in percentage represents lack of opportunity and not of merit.
This is also a good idea politically, because there are way more number of poor people than SC/STs. Also the support of those who are really concerned about the underprivilleged will be gained.
*i consider reservations in elite institutions economic in nature because of the evident job opportunities