What the actual system does is make it so you are screwed if you come from a country with a large number of qualified immigrant applocants in a similar category (employment or family) subject to numerical limits. Population is loosely associated with this, but the biggest negative impact by far, on a country level, is to qualified immigrants from Mexico, and specifically to those in limited, family-based categories. India and China have bigger populations, sure, but much smaller total backlogs of qualified applicants.
And I would go one step further and say that it is probably in the best long term interest to the US to have a large population of ethnic Chinese, for the same reason that Israel has benefitted so greatly by the US having a large and influential Jewish population.
I have a very nuanced view on immigration and I tend to be more republican in my views. i.e. Curbing illegal immigration and moving to a merit vs. lottery based system. America is strong through diversity, but it needs to be controlled in an intelligent way.
That doesn't seem to follow, unless you left out a “not” before “in the interest of” or meant “China” the first time you used “US”.
(I'm not endorsing the result of either change as a correct statement, just commenting on the internal coherence of the statement, and particularly the disanalogy between the juxtaposed situations as presented.)
And yes, not basing it on population side means you are screwed if you come from a big country, but at a huge benefit if from a small country.