The U.S. doesn’t have a real statutory pathway to permanent residency for skilled immigrants. The current H1B to Green Card pipeline is built on a legal fiction papered over a visa program that was the word “non-immigrant intent” written all over the statute.
Gemini gets this correct: “The H-1B visa is a nonimmigrant classification that allows U.S. employers to temporarily employ foreign nationals in ‘specialty occupations’ that require highly specialized knowledge and at least a bachelor's degree.”
You're not actually wrong, but your phrasing makes it sound like that somehow excuses this travesty of justice.
I can only assume that's accidental. You're the 17th most active person on HN, so I'm certain you've seen an overwhelming amount of evidence of how skilled immigrants are immensely beneficial to the US economy.
The H-1B is not the only path to a green card. There are many ways, every case is different, and pretty much all of the paths suck, even if you do everything right.
This decision only makes all of those paths worse.
Intent (are you planning to switch immigrant visa later) and status (immigrant/non-immigrant) are two different things. Visas like B1 are non-immigrant and require that you are not intending to abandon your foreign residence. In practice that means that when you enter US you cannot be planning to apply for immigrant visa. H1B is also non-immigrant visa, but it is dual intent visa meaning it doesn't have that requirement and thus it's fine to enter even if you intent to apply for GC. You can even exit and re-enter after submitting your application.