What you are saying is absolutely true for parts of Amazon, and I'd bet good money on it being true for the others.
I don't even bother answering them because I've already dealt with the process and am not interested, based on the amount they're paying for the (awful) work conditions for which they're known.
This is like many companies in my area. Word gets around.
So the point is, these companies set their salaries, interview process, and work conditions explicitly low because they know they can just use foreign workers if they're not good enough to attract enough Americans at the skill levels they need.
It's a self fulfilling prophecy. They use tons of indentured servant Indians whose green card they promise to sponsor, pay them low, burn them out, and then cry they can't find Americans who don't want to work for similar pay and conditions, but don't need the green card.
They might be paying good salaries, lot of companies dont. Even if the salary is good the company knows the employee is not going anywhere since switching jobs on H1B is not easy and their is 10+ year wait for Green card applications from Indians and Chinese.
What I'm trying to say is that just because h1-b's are curtailed it won't result in contracts not going out to these companies. The contracts will still exist because the rates are extremely attractive. The workforce will just be filled up in Canada.
I have a hard time believing that statement. The salaries these companies pay is really competitive. Their interview process is pretty clear cut. They have a pretty steady stream of applicants. I doubt they need to game the system.
I understand your statement in the general sense though. The system is gamed. But it will still be gamed. If roles are "remote" and not needed on site, they will be filled in Canada where getting a work visa I believe is a whole lot easier. What you're asking for is a law that says you can't hire non-US contractors for any job that can be done in the US. I doubt that's happening anytime soon.
The zeroing in on h1-b abuse is probably 15 years too late at this point. Large corporations needing something like it have moved to fill those roles in Canada or opened centers in Canada. This freeze is doing nothing more than pandering to the base.