Ok let me explain this.
Yes there has been some abuse of the H1 system by "manpower consultants" and Indian IT companies. The (mostly) Indians who have benefited are college graduates but not necessarily the "the brightest of the brightest" and US employers. Who have lost are usually fresh college grads or low experience people in IT.
Please note I am talking of people who have "gamed" the system. Through this route US has also obtained the best and brightest in the world. The IIT and Tsinghua grads on whom poor third world countries lavished their scarce resources.
The net effect of a Elimination or clampdown will be difficult to predict. US universities would loose grad students and research quality would drop. Indian IT industry will suffer for a few years, but will come out stronger.