Witchcraft, homeopathy and IITs

While I have always (well kinda naively) mocked the "Talent" (just more skilled labor?) coming out of our IIT's. This news literally rids me of any guilty conscious i have about thrashing our national education institutes.
IIT-B team shows how homeopathy works
 
I don't want to get into details of how homeopathy is simply ridiculous witchcraft. And in india that might not be such a bad thing since almost everyone is engaged in some kind or the other, IIT chi najar utaro someone. But I simply can't grasp the fact that these "Professors" didn't just prove homeopathy right BUT disproved the entire foundation of modern chemistry*(See below).
 
WTF? quote from article.
''Certain highly diluted homeopathic remedies made from metals still contain measurable amounts of the starting material, even at extreme dilutions of 1 part in 10 raised to 400 parts (200C),'' said Dr Jayesh Bellare from the scientific team"
 
*Avogrado's number