Yeah this fixation on Silicon Valley is dumb. The worst affected will really be other industries. Small wonder that Lofgren who is a Bay-Area Representative is the one sponsoring the auction system. Many Si valley jobs for which H1Bs are hired are generalist in nature. And it is for generic programmer jobs that you have potential for wage abuse. But outside Si valley, for much lesser wages, companies rely on highly specialized skills. So specialized that often these are jobs-for-life without much transferability. Think about skills in microbiology, materials science, etc. relevant to specific products in specific companies like P&G, Dow, etc. These employers and employees will be majorly shafted if legislation is made with just Silicon Valley in mind.
The whole notion of pay big $$s if the specialized skills are worth so much is wrong because these companies have smaller budgets for personnel than plant.