#1
I’m getting back into sight-reading standard notation on my classical guitar because tabs and electric distracts me from fundamentals I never mastered to begin with. I’m running into the same problem I always do—I fucking hate methods that are mostly folk tunes and walking rock lines in different keys. What’s a good classical method that leans on the old etudes? And does anybody know of a method book that uses Indian classical music (Hindustani or Carnatic)?
#2
Indian classical music 1) is a primarily aural, traditional method, and 2) doesn't involve guitar. There is literally tons of classical guitar music, if you want to look into it, but traditional guitar repertoire does involve a lot of stuff like bass lines in different keys. Get Sor's 20 etudes or some such.

There's no shortcut to playing cool music. You have to learn lame stuff first. Until someone write really awesome beginner material in a traditional style, that's just how it is.