The process could (and probably should) be adjusted, but the intent of h-1b is clear that it is to fill positions that are not fillable with local talent at prevailing wages.

If companies aren't really looking for local talent, or aren't really paying prevailing wages, they have been defrauding the government, and hurting the labor market. When large scale abusers of h-1b are prevented from getting future visas, it gives room for other companies to use the visas, and hopefully they follow the rules.