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Having worked at a few large companies, this was the case at all of them. I do think there is a messy middle of companies built on vibes.
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There are 2 issues:

1/ Employment provides training and experience. If the h1bs are given access to the jobs (training and experience), then is it the American's fault that they are no longer considered "best"?

2/ h1b increases labor supply, not the demand. More supply, means lower wages for everyone.

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Why? All big and even medium tech companies have dev offices in EU and India. As example since it's much easier to deal with visas say in Ireland a lot of hiring was shifted to Irish offices.
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