The reason the "model minority" label is bad is that it's designed to help the human mind draw racist conclusions. Like the one that you appear to have just drawn.
The logic seems to go something like this:
A. The average Indian-American in the United States is more successful than the average member of Group X.
B. Therefore, smartness and success must have something to do with being from India.
C. Therefore, if a person is from India, we should give them a preferred immigration status over someone from another country.
But C is explicitly racist. It discriminates against (e.g.) a smart and potentially successful African, or Mexican-American, or American Indian by holding him or her responsible for the "average" success and test scores of an entire U.S. ethnic group. (As if the woman standing before you were somehow responsible for the test scores of every other U.S. resident who looks like her!) And it ignores a very, very obvious alternative theory: That Indian-Americans living in the United States are successful "on average" because the "average" person of Indian descent lives in India and can't afford to move to the United States.
Another problem with the "model minority" label is: Who designs this "model"? The editors of Forbes? I note that, this week, winning a spelling bee in English is a "model" behavior, whereas hairstyling, short-order cooking, psychological counseling in non-English languages, installing ceramic tile, picking strawberries for minimum wage, or volunteering to serve in the military are absent from the list of American civic virtues.