Is Nepal really so bad?

We know that Nepal is going through a political transition. We know that Nepal's politicians aren't the best in the world. We know that Nepal is a Least Developed Country. But is Kathmandu really so bad? An article about Nepal in the Time Magazine reads "Welcome to the capital city of a state on the verge of bankruptcy. The roads are crumbling. There isn't enough street lighting. Power gets cut regularly, and trade has been dismal for years."

Nepal is celebrating 'Visit Nepal 2011' this year with a target of 1 million tourists in 2011. The slogan is 'Naturally Nepal, Once in not enough'  If Time magazine with a global audience of 25 million prints such reports about Nepal, how can the outside world look favorably at Nepal?