I have done some bicycle touring in Czech. (...) it was nasty and filthy beyond belief. I could give you detailed, vivid descriptions from my highly detailed journal, but let it suffice to say it was a very low-grade part of the world at that time which was 1994.
Much has changed since 1994. I was there in 2001, and by then old communist-era cars had become scarce. The streets where dominated by shiny new Skoda family cars. Around Prague, there was construction work going on everywhere. The standard of hygiene and living was lower than in my native Netherlands, but it still far above the sort of third-world level you describe.
And now it's 2009, so the Czech republic must have gotten even more developed. According to
http://en.wikipedia.org/wiki/List_of_countries_by_Human_Development_Index, the human development index of the Czech Republic was about equal to that of Portugal or Malta (both former West) in 2006.