That's true. But if I am not wrong, limit of 2L 80CCD+80C combined. I dont think you can claim a total rebate of 2L (NPS) + 1.5L (80C) i.e. 3.5L.
As for the taxing in a country like ours, it's a vicious circle. You want economy to grow really fast, you need to spend big on infra, defence etc...