I certainly don't think the industry's hiring processes are perfect, but $100k on top of a normal wage for an incompetent worker is a lot of money to throw down the drain and not either run out of money or have someone competent notice and stop the situation before too long.
Unfortunately, to stop the situation you either need to let competent foreign workers in, or somehow make 2 years of masters education, or 7 years of PhD education more attractive to average Americans than flipping burgers and earning $22 an hour, on top of taking hundreds of thousands of dollars loan to get bachelor's degrees.
It's still less than a domestic recruiting fee for many types of roles the H1B was purportedly about, roles where it's hard enough to find someone you need a headhunter's help and the pool is still not exactly what you're looking for.
