Having more intelligent people in the US is a good thing.
You really believe that? You can't imagine that, hey maybe these companies gasp lie so they won't have to pay market wages? That some C?O somewhere cares more about the bottom line than hiring qualified local engineers that they can't threaten with deportation?
Actually my company (which hires tons of foreign developers) does have applicants rejected. They then hire some lawyers to help reword the application. I'm not sure these are all H1-B, there are other hiring visa designations, but it definitely is the case that the government can reject applications. Frankly the government should reject even more of them, and then also reject some of the resubmitted ones, however the government is easily fooled by clever wording.