Increasing H1B caps does help immigrant founders who aren't already millionaires. I've been on an H1B visa and I've started my own startup. You can be on an H1B for your own company so long as it's clear there is a board that can fire you.
There's two ways to go about making it easier for immigrant founders to work legally in America: create a new startup visa class that is likely ridiculously nebulous, or increase the H1B cap. I think the second is much more likely to pass.
There are more ways. For example, preventing bodyshops like Tata et al from taking all visas every year. While it's profitable to abuse the system the system is going to be abused. It's not like USCIS is oblivious to what's going on, if it were told to enforce the law, I am pretty sure, it would have complied.
Maybe, but the cap is so oversubscribed now that even if they were banned, and even if the 1/3 of the H1B visas those kinds of consultancies take went to someone else, there's still no more guarantee you'd make the lottery/cap.
This year Infosys, Tata, Wipro and IBM submitted more than 65000 applications [1] (which is the current cap). And these are not the only bodyshops in the running. If the law had been enforced then there had been plenty of H1-Bs to go around the year (or, at least till October/November) without a lottery like it always happens in the years when the "consulters" get cut due to poor economy.
There's two ways to go about making it easier for immigrant founders to work legally in America: create a new startup visa class that is likely ridiculously nebulous, or increase the H1B cap. I think the second is much more likely to pass.