They don't need these people to support their lifestyle as they get their money from mineral resources rather than peasant productivity. It's just a way of saying "we don't care if you live or die, so believe us when we tell you that we will slaughter you like dogs if you threaten us again" keep to the Fen Causeway
Also, there is internet already in the town, the one thing actually lacking being water. Not a small problem, but do aid workers actually help ? Burma isn't a failed state.
Finally, the US calling on bypassing government authorisation is quite rich, when Bush behaved at least as badly in New Orleans.
Not to say that the Burmese government doesn't do propaganda ; but the western governments are engaging in similar actions, right now. Un roi sans divertissement est un homme plein de misères