The H1-B system seems designed to allow big companies to exploit foreign labor to drive down wages and hold those foreigners hostage while they're here. Ratios better allow mobility of foreign workers and allow them to seek market rate salaries. If I were in control of immigration policies, I'd set a 3:1 American-to-foreigner ratio based on job classification/salary bands and make it apply to any company with more than 50 employees. Any immigrant who passes a DHS background check and can get an offer from an eligible company should be able to get a work permit, regardless of their home country, with no time limit when they'd be sent home. Only failing to find employment at an eligible employer within, say, 6 months should force someone to leave. And after a 5-year working period, they should be able to apply for citizenship. At worst, it becomes a jobs program that forces employers to employ American citizens to get the workers they need.
The remaining concern is distorted markets like foreign language teachers (brought up elsewhere in the thread), where it may be politically infeasible to raise compensation to match the value workers create.
The purpose is not to give visas to the wealthiest bidder in the wealthiest locations and industries.
Prevailing wage requirement already solves the problem of wage velocity, so this is just creating more issues without solving any.
H1B and similar programs should be used to fill in the holes that are on the national level - i.e. where there's no labor force anywhere else in the country that could be enticed to move.