thats how competing in global economies 
  work, if someone can do your work for cheaper, 
  thats what its worth.

I agree with that...until you do that in YOUR country. From your definition, you would be ok with moving all of India to US and working at lower costs leaving zero jobs for the people here. That is ridiculous.

I have defended outsourcing OUT of the US ruthlessly. ie. if an American IN America is doing something for 80,000 and his job can be done for $10,000 in India, it is 100% fine to send that job to India. But it is not fine to bring that guy INTO America BECAUSE he is cheaper. Neither is that the purpose of H1B.

  I thought the salary difference was mostly to cover moving and visa expenses anyway?

Untrue. Read around.