The real problem with H1B, that outsourcing firms exploit, is the lottery system. Issa's proposal doesn't address that problem. Zoe Lofgren's bill, which replaces the lottery with a salary ranking system, would be much more effective, in my opinion.
But that sounds like we are bringing in more immigrants, and that's not something that the now suddenly very protectionist US will want to do.
Of these 7%, there is a per-country limits - Iceland (population 320K) and India (population 1.2B) both are allotted the same number of Green Cards. These limits treat each nation equally, but not immigrant equally. Applicants from Iceland get their Green Card in few months, but those from India will have to wait many years to get theirs.
This is broken.
Recent grads are going to be competing against people with years of experience, and the pay is going to reflect this. That means there's less reason for kids to go to school in the US, since they're going to have to leave, or if they do go, we lose that talent. They might not be paid as much as someone coming in with more experience, but they might ultimately provide more long term value to the country.
Ideally I'd like a new visa without a lottery system that basically guarantees graduates of US universities a chance to live and work in the country after graduation.
Why in the world should we institute something that would result in brain drain?