As a long time H1B holder I am a bit offended by the article and there are quite a lot of inaccuracies.
* The people that I know who have H1B visas both at my company and others are definitely not scraping the bottom of the barrel wage wise.
* To get an H1B visa you generally have to find a company in the US that is willing to go through the hassle of getting you a visa (And the time this takes before you can actually come over and start working).
* H1B is a "dual intent" visa, meaning you are legally allowed to aspire for permanent residence while you are here. It takes forever though and during this time you have to stay at your company (It usually takes at least 8 years). While you are applying for a green card you can extend your H1B indefinitely (I'm just about to extend my own for 3 years and I have already been here for 9).
* O might not be attainable even if you have a exceptional talent. To get one for working in IT you are pretty much required to have a masters degree. I would contend that exceptional talent in the IT field have fairly little to do with official schooling.
* Some of the H1B visas that are "fraudulent" are also people who have gotten promoted while here and the company didn't refile the proper paperwork indicate their new job titles. This usually means that they have a more qualified job and are paid a higher salary. I am not saying actual fraud doesn't happen, just that I doubt it is as prevalent as the statistics might show.
And finally, on a macro economical note, why would you not take as many people as you could that are skilled earn a good wage, can't be unemployed and generally use social resources (If I loose my job I have 30 days to get out).