To that I would say a resounding NO. Anytime.
Agarkar is an asset to the ODI side, IMO.
Although hardly economical, he gets wickets at unusual rates. Currently he has more than 1.5 wickets per match, which is quite an achievement. And wickets are quite important in the ODI game.
Then again, since this is the ODI game, we need allrounders, and Agarkar, although it'd be stretching it, is a rather handy "allrounder."
I remember his 95 against the Windies and his 50 off 21 balls and his 26 off 12 to win the match for India against SL when he hit 2-3 sixes off the last two overs...
He's a handy bat and the team needs players like him in the ODI version of the game. Plus, he's the most experienced of them all, considering Srinath doesn't come back (noooo!). Blooding youngsters is well and good, but to go in without experience is almost suicide, especially for a team like India.
Now tests are a completely different version of the game, and I personally think our test bowling attack should have Harbhajan, Khan, Kumble if it's on Subcontinent and Nehra if it's not, and the 4th bowler can be someone else...not necessarily Agarkar, although he's handy there too...