I have suffered because of this. I spent 6 years on H1 with no end in sight. It would take at least 20 years for Indians to get a Green Card. Till then, you have to do do insane amount of paperwork, deal with lot of uncertainty when we you are up for renewal and are in a limbo state.
Most of my friends who are really smart and are in US, have resigned to their fate and given up on their entrepreneurial aspirations.
If people think that companies like Facebook and Google are not exploiting people, they are mistaken. Even though the wages that they pay are much higher - H1 creates lack of job mobility, within that class of employees. I worked with someone really smart in an earlier startup in India. He spent 7 years in Microsoft because it seemed like he will get Green Card next year.
I worked with someone senior at FWD.us and as per that person the intention of FWD.us is to get more H1 and not Green Cards.
I have lived through this and hopefully out of this cycle. However the best from India aren't moving to US anymore. They now know about the uncertainties in their life because of H1 and are choosing to stay behind in India to build startups there.
Big consultancy companies (TCS, Infosys, Cognizant etc) are abusing the system. I hope someone puts and end to this.
Edited: formatting