It’s definitely grotesque. No one should be begging like that in another country. Although ‘begpackers’ is cute, I’d just call them beggars. It reminds me of people on GoFundMe who want help paying for a trip or getting an XBox. I was raised to think that begging is shameful, unless you are desperate.
I have known Westerners who traveled abroad on very little money (because beyond scraping up enough for a plane ticket they didn’t have it) and they worked their way through their trip, offering to do dishes here, clean up an area there, exchanging computer help for a meal, etc. They also met people who would let them crash on their floors. This feels very different to me and not degrading for the visitor or the visited.