What's wrong in that? It's global capitalism, which America stands for and wants to spread. This is to get things cheaper and for the American companies to be more competitive, isn't it? In the process some of the Americans lose out.
You are correct. Those H1-B folks also become a virtual slave to the company that holds the H1-B. I know of several here and let's just say they are owned....they best work 70 hours a week or will find themselves on a trip back to Bangalore.