By your logic, all the folks that pickup trash in India should be allowed to move to America and work at a cheaper price than Americans. I am guessing you are also not in favor of the idea immigration, preferring instead a world where anyone can go and work anywhere.
Notably, they should be able to switch
employers without being deported
H1Bs are taking jobs away from them,
which implies that they are interchangeable cogs
one of the biggest factors in my career
is still that I was born in Cambridge,
Massachusetts
And regardless, the idea behind H1B was never to create "fairness" between the haves and the have-nots. The goal of H1B is a selfish one: to help America. If it is not doing that, it's time to reconsider.
If you want an H1B-like visa to address the disparity between the Indian and the American developer, have a debate in Congress and create a new category(some would argue we already have many, ie. the green card lottery).
The market price is a signal - it tells
you whether there is currently more supply
for an industry than demand.
2.) I'm all for it, because it recognizes that programmers are not interchangeable. I find it ironic that the same people who complain about employers treating them like interchangeable cogs in a wheel then turn around and argue that H1Bs are taking jobs away from them, which implies that they are interchangeable cogs in a wheel. One or the other, man - either you are a beautiful unique snowflake, in which case you have nothing to worry about from H1B competition, or you aren't, and should worry about becoming one because you're screwed wage-wise anyway.
Your post has also touched on a couple pet peeves on mine, which are:
3) I find it disconcerting that after all the time I've spent with computers, one of the biggest factors in my career is still that I was born in Cambridge, Massachusetts. There're many Indian or Chinese programmers who study for years - since they're little kids - so that they can do well on the college entrance exams, get into IIT or Chinghua, and then emigrate to the United States in a reasonably high-paying tech field. It seems vaguely un-American that being an American trumps smarts, hard-work, and prudent risk-taking.
4) What's with this deification of a particular price level ("should pay he market price of MY country")? I see this with home and stock market prices too - people assume that whatever the high is what prices should always be, and will go to great levels to keep them from going down. The market price is a signal - it tells you whether there is currently more supply for an industry than demand. If there is, perhaps you should adjust your behavior accordingly (eg. find a different subspecialty) instead of complaining about wages falling.