Paul Graham is correct (posting anonymously to keep my "foes" quota manageable).
No reason to hate someone if their argument is coherent and clear. So let's see what we have here...
The exact same complaints about wages were no doubt made when Jackie Robinson integrated USA baseball, or Red Aurbach began recruiting African American players.
Bad comparison; Jackie Robinson was a US-born citizen, as were his pioneer contemporaries. He wasn't shipped into the job from overseas and threatened with deportation if he bitched about his pay. He also didn't have rival baseball teams clamoring Congress for tickets to import more black players. Also, your argument sets up a strawman for later, the part which I won't even bother to address due to the fact that it is also irrelevant.
The arguments against Graham's do not suggest that programming will be weaker, or that the software industry will be weaker, by allowing H1B recruits.
False argument: no one is credibly arguing that importation of a rockstar H1B-holders would weaken programming or the software industry in the US --if that were truly the case (it most often isn't).
I can say however, as someone who once worked at an H1-B-happy corporation, that I've found one big fat problem: cultural and language difficulties have often gotten in the way of communication within a given team, causing information and data to take up to twice as long to get across (especially if a conference phone is involved). I am confident that others have also found this to be a problem, and I defy you to prove otherwise.