It's fucked-up because there are very, very few ways to actually get into the US legally.

And in this case they're not giving educated people preference. They didn't come here on a rule that says that people with postgraduate degrees get to come to the US. They came here on a student visa because coming here on a student visa is one of the few ways to get in at all, and it just so happens that a student visa can be upgraded to an H1-B later if the student lands a job with a company willing to sponsor them.

I'd recommend reading this flowchart which explains in detail how fucked-up our immigration system is:

https://reason.com/assets/db/07cf533ddb1d06350cf1ddb5942ef5a...

Interestingly enough, it doesn't mention coming here on a student visa and then upgrading to an H1-B; it's basically the only loophole around that depressing flowchart. Vox's slideshow on immigration, though, does link the flowchart and mention student visas are one of the only other ways to get in (the other is a tourist visa, which is useless for immigration because you can't upgrade, and you'll be denied a tourist visa if the US thinks you're interested in immigrating):

https://www.vox.com/cards/immigration-immigrants-reform-us/h...

The academic route is basically a form of modern-day indentured servitude, which is another way in which wages for American students who decided upon pursuing a PhD for "the life of the mind" rather than economic reasons are depressed (e.g., Indians are willing to work for much less because it's their only way in, and the money is much better than developing countries). I have little faith that efforts at unionization among grad students and adjuncts will gain any traction until this is addressed.

tl;dr: Immigration reform would be a godsend for restoring some sense of sanity to the system.