A city's leadership shouldn't try to look after the city's interest? The answer to that is so obvious, you should look to explaining why it doesn't apply to the elected leadership of a nation.
How is encouraging brain drain looking out for best interests?
However, the vast majority of H-1Bs are not better than Citizens/Perm residents. And my personal experience working with them side-by-side would actually say that outside of the big-tech the majority of typical H-1Bs are actually significantly worse than their US Citizen peers.
The argument of that we need to import H-1Bs due to shortage on the local market is also laughable given the state the market has been in the last 5 years (constant layoffs, many qualified candidates can't land a job for 1.5-2 years).