It's better because it moves the validation of the startup from USCIS, which is definitely not capable of this, to someone like an angel or VC.

What it seems to be saying is, if someone is willing to put a specified amount of money in the venture of an alien and hence prove to USCIS that there is some value in having these founders come to US, then US will give them Visa/permanent residency.

I do think that is a good idea.

Are there issues, sure, everything has issue. Name one perfect thing in the world. But this is definitely a step in the right direction.

You're missing the point. Channeling energy to fixing what is ridiculously broken will likely yield better results. Where is the sense in creating another monster when you've got one in your front lawn?

Does a super angel investor pouring money into it guarantee success? Or the $1 mil revenues? And what when it doesn't work out?