It would be simpler to award the limited pool of H1-Bs in order of descending wages, and cross-check with the IRS afterwards to verify those salaries are actually paid. That would kill all the bottom-feeding body shops.
If skilled foreigners accept lower wages because the right to come to the US is worth something to them, then the price of the visa would settle at around the difference in wages. So overseas workers wouldn't undercut US residents. And the perceived monetary value of living in the US would accrue to the government, not to body shops.
If you are in a low wage area and feel that your workers are as productive as workers in high wage areas then you can pay them a high enough wage that they get a visa.
If you don't feel that way then obviously the visa should go to a more productive worker and it doesn't matter that they happen to be in a high wage area.
If you believe immigrants are good for the economy and make everyone richer, strengthening existing companies with their unique talent and expertise and founding many successful new companies, why let rich costal cities get all the benefit when poor cities have a much greater need for an economic boost?
Most people don't believe this statement is true (or, at least as true as you do) because if they did, we probably wouldn't be talking about any of this on HN.
Doing something like that at scale seems like an easy way to get caught and go to jail.
Do you believe that H1B is not inherently abusive?
Do you believe that if US agrees that someone is useful, they shouldn't get residency immediately?
Do you think that indentured servitude is a reasonable tool?
H1-Bs are transferrable, so calling it "indentured servitude" is incorrect, the real reason why H1-Bs usually stick with an employer is the green card sponsorship by the employer, which is not transferrable.