I have met very talented people from the subcontinent. I think the issue is the H1B structure is open to fraud.
Also, I don't know how many h1bs have you worked with. I have worked with many (hundreds), and it's the same spectrum of talent you'd find anywhere. This is probably not the intent of h1b, but banning a set of countries is not the solution. Changing the criteria is.
So many places were under the yolk of the same historical forces and managed to pull themselves together - India is rather unique in its inability to do so.