I don't get the higher status part. Why would big tech companies, for example, be more favorable to immigrants than americans? There are a lot of companies that will reject you simply because you are not american/greencard holder.
Obviously personal opinion but I don't think gutting H1B will lead to more jobs for americans or just more jobs in general. I can't predict the side effects, but I doubt the tech industry is going to stay the same
Of course us foreigners take it personally... Are you serious? How is this understandable?