I feel like this is more of an economic issue than an education issue at heart. I agree that in most cases the incoming talent is not undeniable, so there is little argument for favoring foreign students over domestic students besides an economic one. Somehow foreign students, universities acting as corporations, and global trade has created the mess of the current education system which includes our whole student loan fiasco which makes the younger generation quit before they even start. It seems that colleges have lost sight of being primarily a system to educate the next generation.
Its a similar issue to american businesses taking their jobs overseas, but instead american colleges have, in some sense, taken their education overseas.