Little Juan may not be able to read after graduating from public school, but at least he comes away with a whole lot of (unearned) self-respect.
I don't see why Little Juan couldn't be taught to take pride in the Spanish part of his heritage. There are relatively few pure-blood Indians in Mexico. Most of the population is mestizo, i.e., mixed Indian and Spanish blood.
I'm Irish-American. I certainly take no pride in pre-Christian Celtic paganism, among other reasons because pre-Christian Celtic lands were also marred by religious human sacrifice. I only identify with Irish culture after the victory of Christianity, and I would think Mexicans -- who I understand are mainly strongly Catholic -- could do the same.