Today, there exists a new city outside the site of the ruins (New Hampi), but there are still people, like the one in the picture, who live in these small temples, escaping the mass displacement. Walking the streets you will also see many houses whose construction was interrupted.. they were using the old temples as foundations..

Personally I do not know how to judge this whole situation.. also because i don't know all the facets of the story. Certainly the fact that this area is preserved is positive.. also because in India there isn't any culture of respecting the nature, so you will see garbage everywhere (A SHAME). But on the other hand we have to understand if these people were simply left on the street (very likely).