Hindu is a GEOGRAPHICAL word used by the people outside Bharatvarsh or Aryavart. Intially this word was used by persians to identify the people who used to live near and across the river SINDHU. HINDU was their localised version of SINDHU. When Greeks came they used to called 'INDU' FOR 'HINDU' because of the absence of the letter 'H' in the greek alphabets. Finally when the british came they changed the names of few places and rivers, hence called 'INDUS' for 'SINDHU' river and 'INDIA' for 'HINDUST(H)AN (STHAN means PLACE). Subsequently the words 'HINDU' and 'INDIA' became popular.
Basically going by that rationale every citizen of India irrespective of any RELIGION like ISLAM, CHRISTIANITY etc is first HINDU OR INDIAN. Britishers popularise the word 'HINDU' and made it somewhat 'OFFICIAL' in their terminology. Subsequently they used this word 'HINDU' to use the policy of divide and rule.Unfortunately the usage or rather misuse of this was continued after independence and infact the word which started merely as some geographical denotion was branded as some 'RELIGION'.
Hope I am clear enough why I don't use the word 'HINDU' OR 'HINDUISM'. No Vedic literature use the word 'HINDU' anywhere.It is a sheer misnomer that stuck. There is no 'RELIGION' in Indian culture . Only 'DHARMA' and mind you there is no English translation for the word 'DHARMA'. What is the source of 'DHARMA'? VEDAS are the source of 'DHARMA'. For the VEDIC outline you can visit http://www.facebook.com/photo.php?pid=5221887&l=d5b509d323&id=580192966
Now coming to your reasoning of Buddhism/Jainism/caste system/poverty etc etc.
Let me start by saying that the present 'RELIGIONS' not only Buddhism/Jainism were originated from VEDIC culture but also ISLAM AND CHRISTIANITY. The whole world was VEDIC before the origins of 'RELIGIONS' like ISLAM AND CHRISTIANITY. And one should not feel shy in RECLAIMING the orginal culture that is VEDIC. Infact many people around the world are already returning to their original VEDIC roots.
VEDIC CULTURE AND KNOWLEDGE was prevalent and known to Mayans, Egyptians, Greeks, Romans and Incans. Library of Alexandria used to have all VEDIC resources and literature which were destroyed by Constaintine to spread terror and ROMAN EMPIRE. VEDIC CULTURE AND LITERATURE was also known worldwide due to trade links of Bharatvarsh with rest of the world, but only in the form of some stories or vague information. Greek Gods and mythology were the result of that half-baked vague information.
But the Genuine Vedic Knowledge was stopped percolating among the masses due to spread of selfish and totalitarian attitudes of those who had access to that. This actually started at the begining of this age called 'Kaliyuga'. Eventually it resulted in the formation of different groups and beliefs as a rebellion groups in the form of Buddhism and Jainism but unforturnately they also remain half-baked.
Jesus Christ visited India to seek true knowledge of VEDAS. There is no mention of Jesus Christ life in the bible from 12-30 yrs because he was in India. Proofs in the Buddhist monastaries of Leh, Russian writer Notovitch book of 1887 and Jesus Tomb in Kashmir when he manage to survive the crucification. Mary's tomb is in present Pakistan in the place known as MUREE (famous hill station there like Shimla). His followers started CHRISTIANITY and constaintine did his best to distort and destroy the vedic knowledge and manipulated Bible. Hence Vedic culture was destroyed.
Simlarly on the lines of Constaitine Islam originated which again borrowed half-baked knowledge and own version from VEDAS. Result in different sects and castes in Islam. The presence of Shivlinga inside the Kaaba and presence of 360 idols are the indication of vedic heritage just to name the few.
So the distortion of Vedic Culture/literature was done thousands and thousands years after Mahabharata war (nearly 5000years) which gave birth to 'RELIGIONS' and its offshoots in the form of caste system, poverty and superstions. Also Vedic astrology is not sun based but moon based and it wasn't Galileo who found the sun at the centre but Aryabhatta and also it was know before Aryabhatta as well.He just highlight it.
These are merel dot points to see the things and interpret them in a right perspective and logical manner. And if you want I can also explain the relevance of Vedic knowledge and culture in today's so called modern world. In fact peple are unaware that they are using Vedic knowledge but NASA is not coz they are not fools.