As a green card holder in a non IT field this is extremely interesting. I understand the frustration with the H1B program. I've seen the abuse of the program first hand. But there are some points I want to make
130k is ridiculous, it may be a norm in Bay area, but this amount of pay is not something you see everyday in the midwest. I know very well respected professors in sciences and engineering who don't make that much (and most of them can't be replaced with anybody in the world, let alone American citizens or green card holders). And keep in mind that most of their income is coming not from University,but from research grants and contracts. Raising the pays scale is not a bad idea, but not to such a high number.
I got my green card through a process that might be a good model for a brand new H1B program. I got it through a class green card for exceptional ability (EB1A and EB2-NIW if you want to Google it). I had to prove that I was way above an average US person in my field, but the criteria was set up by the federal government, not a company. I had to provide objective merits ( my number of publications and citations compared to average number of publications and citations of a US person in my exact field of work), plus recommendation letters from other people in the field who didn't know me personally (the burden of proof was on me), as well as research contracts and companies that have directly benefited from my research. I also had to justify that my field of work was beneficial to the US economy as a whole. So you see, even for such a specific and narrow field of research that I was in, it was possible to create a set of rules that could be reviewed by an immigration officer, with zero intervene from my employer. So, it should be possible to create such rules for IT jobs as well. It can also be created for other fields. This way, you still get the bright minds to come and work at Google and Amazon and Academy, and you stop abuse from employers, if rules for determining skills is set by the government and not companies. Before I started applying for US green card, I was viciously approached by our German collaborators to apply for EUROPE Blue Card instead. Those talents that will be harmed because of 130k/year won't really suffer, but American companies will.
An an immigrant myself, I am obviously for immigrqtion, but this current H1B situation is shit. It doesn't help anybody. Those IT people on H1B are slaves who make above minimum wage but are still at the total mercy of the employers who will fire them the second they complain about anything (not just pay, think work space harrasment). It's not fair to them, it's not fair to US workers ( from the labour point of view, I have equal rights as an American worker now, so I completely feel you). If H1B is reformed, those really talented workers will have a voice.
I know unions are a polarizing subject and I know about corruption and fees and everything. But really, it might not be a bad idea. I've worked in Academy my whole life, so I don't have a first hand experience. But I've heard nothing but positive feedback about UW Madison graduate students labour union. Something to consider.