For context, every wealthy nation has work visas like this. It is not unique to H1bs. Dubai was essentially built on this framework with the added aspect of confiscating passports.

It can be used well in some cases, especially in attracting a workforce to an underserved area. For example, immigrant doctors and nurses make a up a huge proportion of the hospital workforce throughout the US (upwards of 1 in 3 in some urban areas) but even moreso in rural areas.

The problem is when it's misused, especially in the tech sector.