Is Delhi University overrated?

No.
I do not agree with the fact that the University of Delhi is overrated. It has gained this position because of the level of education and knowledge it aims to impart to its students.
Though there are flaws in the implementation and the administration of work but at the same time when you able to cross those hurdles and problems, you get to know what you have learnt.
The exposure that University of Delhi provides is incomparable. Everyday you learn something only if you have the urge to learn.Nobody is gonna come and tell you about the events and societies in the campus and you should attend them. Once you start getting acquainted with such things, you are able to notice yourself what you have actually learnt.
Apart from this, fest season as always goes awesome here. There is lot of fun and alot to learn from organising an event to making it success.
You might have also heard about the FYUP programme which was introduced with the theme to induce children with non curricular activities and make them learn subjects other than those of their own discipline. I think this kind of concept was never ever in the thoughts of any other university.
Lastly MBA programme at FMS and BFIA at SSCBS make it stand apart and ahead of other universities.