That's the thing though, the h1b aren't getting 5% of 100k, they're getting 5% of 60k and bringing down the demand for locals. Unless these people are worth the money, then businesses should be expected to pay the money. So in short if they plan to raise number of h1b visas, the salary minimum should be significantly and from my understanding it already has.
If you were to replace the higher paid positions with lower paid outsourced positions the allure of Silicon Valley would be lost entirely to me. The talent would simply move elsewhere.
I don't understand why you're favouring a race to the bottom in terms of salary in terms of benefits to a business. It makes our talent go elsewhere.