H1-B applications are not only for tech jobs, and not only for the bay area. There are many other professions which are subject to the same cap, and also have to look outside of the US to fill roles. Nurses are one that come to mind. If all H1-Bs are just sorted by comp, you'll end up with FAANG getting 80k H1-Bs per year.

You may want to argue that "well then other companies don't deserve them if they can't compete with FAANG", or "then companies should pay SF wages everywhere" (which I sorta-agree with), or "then other industries should pay more!".

They may be valid points, but it is unreasonable to expect that another industry can compete salary-wise against FAANG at the moment, and it doesn't make their inability to find candidates locally any less true.

Regarding preventing visa farming, an easier solution (in my opinion) is to improve the flexibility for an H1B worker; allow them to work for any employer for the term of their status.

If an employer used an H1B in order to hire a foreign worker and then under pay them, the worker would just get another job that pays market rate, without the work status concern. Without the artificial control over the employee, H1B harvesting wouldn't be worth it.