So you are able to dig up quotes supporting your spin, but couldn't run a Google search finding a quote on Camp of the Saints?
Here, this HuffPo article links directly to SoundCloud interviews where you can hear him say it: http://www.huffingtonpost.com/entry/steve-bannon-camp-of-the...
Re: This is about "merit" >He is talking about H1-B visa abuse, just as the OP says.
Trump: Trump [...] asked him about keeping “our talented people in the country,” especially international graduates of Ivy League universities.
Bannon: “When two-thirds or three-quarters of the CEOs in Silicon Valley are from South Asia or from Asia, I think...” Bannon responded before trailing off, according to the Post.
Yeah, fake news, from the horses mouth himself.
Do you really think American citizens are having tough time finding work because of H1-B abuse? The unemployment rate in the tech industry fell to 2% in 2016, well below the level of full employment. The median salary is $90k nationally, and >$100k in major tech centers (CA, NY, TX, etc). Sure, H1-B abuse should be reduced, but more because it hurts companies truly trying to fill requirement positions to build products, by fly-by-night consulting firms.
Speaking of someone in the tech industry for 20+ years, I'd say the biggest problem isn't the immigrants, it's the education system and the culture. It is not the fault of immigrants that Americans aren't getting advanced degrees, or that entire Phd departments are F-1 Visas, or that so many native born candidates are lack luster. American culture's "melting pot" could benefit from an infusion of immigrant culture from those who are still hungry and have a very high valuation placed on education and grit.
Keeping them out just makes us weak and complacent.