What disease is that, (very) specifically? I'm having a hard time nailing down what you mean, and how you arrived at that conclusion, but think it would be worthwhile to understand more.
The disease is, to a large extent, myopic and self-serving reasoning. It goes like this: we want larger number of "highly skilled" developers to come to the US, preferably, permanently and preferably, working for VC-backed firms.
Let's think about the consequences.
If this is implemented, it will hurt the sender countries (brain-drain) and may even lower the salaries for people who are already here. I'll go back to the brain-drain again. The REST OF THE WORLD NEEDS DEVELOPERS TOO. Maybe even more than the US.
Once here, these people will toil long and hard and face very steep challenges in making serious money. Maybe 1-2% of them will see millions. Most will make sub-par wages as immigrants. Yes, H1-B wages are lower.
Meanwhile, VCs, since their bets are widely hedged will get to play many rounds of the same game increasing the odds of the payout.
Hurt the sender countries? Maybe in some cases. But in many, opportunities were limited there. They come here, not just for money, but for meaningful work that engages their skills at a challenging level. Good for everybody.
This used to be true in the old days. These days both India and China are extremely hot markets for good software engineers. Europe always had a shortage of developers. They are also not markets where people from other countries can go and work.
So, that means all things being equal, when really good developers leave their countries they are depriving the local market of their talent.
If you think of the equation this way -- when engineers immigrate to the US they are bringing with them the investments that their own countries had made. Outside the US many countries subsidize higher education, especially engineering.
It used to be that the money that these engineers sent back would more than offset the local productivity gains. Given the growth in China and India and the salaries there it is hard to argue that the remittance is a good compensation for this "brain drain".
