Talent may be plentiful in the Bay Area, but just like dating, both parties have to actually want to work together and believe in each other. Plus, no engineer I've interviewed was desperate for a job. Nor would I want to hire someone who was desperate.
That being said, regardless of someone's H1B status, we would pay exactly the same base salary to them. Additionally, the H1B person even comes out ahead since we also pay the crazy high government fees for the application or transfer.