@tknarr @lauren
To me, the whole "H1-B is for when you simply cannot find a qualified citizen/green-card candidate" problem could be solved with what seems to me to be a missing requirement.
If you "can't find" a matching candidate, clearly you've already tried recruiting with generous compensation etc. So if you're forced to go outside the national labour pool, it should obviously be that anyone you hire on an H1-B is right at the top of your compensation, right?
i.e. hire an H1-B engineer, they had better be the highest-paid (or tied for highest) engineer in the company.
If you enforce that, the cheap-labour abuse just goes away...
But of course, every complex problem has a simple, easy to understand wrong answer, so maybe I'm missing something.