India/China has a huge supply of engineers across the board (good, bad, senior, junior etc.,). And US companies always want to maximize their profits. So increasing the bar on H-1B visas will increase the quality of H-1B's making their way to US.(very competent, hard working, willing to work for lower wages in the initial years).

This is a huge benefit for technology companies who can directly recruit from these countries for US offices, which they were not doing before due to lottery uncertainties, and instead had to rely on L-1 route. (recruit for local office, then transfer)

As for the other US jobs that were being filled by low skilled H-1B's, they will simply move offshore/nearshore/remote or replaced by AI in few years. This is a big win for consulting firms as their offshore profitability per employee is 3 times higher than onsite. Given a choice, they would want all their employees offshore, and the only reason they had to bring in some % of H-1B's was on the US client companies request, which they may do away with now.

Bottomline: Protectionism did not work for manufacturing, and will not work for Tech either.