Well if the time period you are talking about is 2002-2004, yes, things are considerably better now. That was an awful time to be graduating as a CS major, I was only a few years ahead of that period and it hit me pretty hard, but recently, I don't see people sitting out of work for long periods of time, I don't see high unemployment in the tech sector at all, certainly nothing like what it was back then.
But every industry goes through dips like that, and the economy is still stuck in a boom or bust cycle, but I have yet to see any evidence that the job market for software engineers is really so difficult right now that qualified candidates are sitting around desperate for work.
Not that that means we shouldn't consider reforming H1-B visas, hiring for only high paid positions is probably the best way to go as it will hopefully encorage more training of people on the low end. I know a woman who is around 30 with no tech background, who recently went through a 6 month bootcamp to prepare for a career in QA (an area frequently filled by H1-b visa holders in my experience) and now she has good solid job. With less low cost H1-b visa holders we might see more and more of this which could be quite valuable. Certainly you can't just retrain everyone into one kind of profession but when it comes to tech we would do well to not close off the entry level of the field from people who are changing careers.