However, there was never, ever a period of time where any of these H1B holders were ever guaranteed permanent residency in the US. Not a single time in the last 20 years. Every single one of them KNEW what they were getting themselves into, and that not only could they get laid off at any time, but the road to a Green Card was extremely, extremely long (10+ years) and hard.
I personally helped one of my best friends get his Green Card after 10+ years of waiting (he's Indian). But at no point was he under any belief he was owed anything. He hated the situation, but he knew exactly what he was up against, and the same goes for every other H1B holder.
So, it sucks, but it's part and parcel with the privilege of working in one of the best countries, in one of the best paying jobs in the world. None of these H1B holders are owed anything, and if their 60 day timer runs out, yes, they will need to leave.
And I fundamentally disagree with increasing the number of GCs for Indians. The Indian body shops have completely exploited the H1B system by inundating H1B applications, which is why it is so heavily overrun with applicants. We should not reward this bad behavior, so just let everything work itself out over time, without rewarding the bad players.