In general, the entrepreneurial scene is much smaller, but if you want to concentrate on SE Europe is fine.
I think you are a bit off on both :)
Salary:
As a Software Engineer, chances are you can a bit more (especially including bonus + RSU). If you're "senior" you can earn quite a bit more.
Also: There are tons of other small perks that add up (phone/internet reimbursement, free food, public transport pass, free electric car charging, ...)
Rent:
You can currently get a 2 BR, 2 BR in Mountain View for about $3500 (managed newish building 2 minutes from Castro)
(Source: moved to Valley from Europe via Boston)
http://blog.sfgate.com/ontheblock/2015/06/02/san-franciscos-...
$2500-$3000/month will get you a nice 1-bedroom in some of the more desirable neighborhoods.
I should know, I just spent a month finding one.
If you're looking for options out of USA, I would seriously recommend Canada. It has a culture similar to the US, but better visa regime and healthcare.
So in summary, H1B applicant pool can vary from year to year so don't cross it off your list yet
Not sure why you would consider those years "wasted". You're working, gaining experience and making money. Since the job market is great, an H-1B isn't really something that would keep you back from negotiating your salary or anything else.
Getting the green card is a bit different, but there have been some reforms over the last few years.
I'd personally recommend it (having been on L-1B and H-1B).
I am currently on a student visa in the U.S. and was considering trying the H-1B route. However, since it is so tiresome and it literally can make you waste years of your life, I was thinking to not even bother. When I was doing research, most people say that the US is the best place to be at as a SE. This makes it sound like if you are doomed everywhere else. I am happy to see that you seem to be a counterexample to this. If you don't mind me asking, how "bad" is it really to be in Europe instead of US as a SE? Which country do you live in? People say pay is so much lower in Europe, but does it really affect you that much?
Thanks!