> If yes, you don't get the competent ones but the cheap ones who have no choice. The good ones work on their terms for whomever they please.

I'd say that this is partly untrue. You can get get a O visa if you're an "alien of extraordinary ability". Usually this means that you have already published articles in your field .

Now, if you want to hire someone who is good, as in has a lot of potential, but doesn't have the credentials to prove it, the H1-B is the only way to get him/her quickly.

Since a lot of companies want to hire great fresh out of school candidates, the H1-B is the shining solution.