Frankly the only place where H1B seems to be "misused" is in the outsourcing industry. And that too it is "misused" if you look it from a protectionist perspective.
I've never seen any high skilled jobs going to H1Bs just because it is cheaper. In fact I've seen the opposite: small and mid-size companies hesitating to hire H1Bs because of the uncertainties involved.
Also, PhD glut in bio has nothing to do with H1B! The author misleadingly brings it up because it has the "woah" factor to buttress his argument.
Also can somehow explain to me how it is not protectionism to forge Disney to do something in house while it can be done cheaper by engaging a foreign company like Infosys?