This is a bit extreme. On the other end of the spectrum the existing system is heavily abused and hard to defend. For example many if not most PERM applications in tech are a complete sham. Putting tiny job adverts burred deep in a newspaper hoping nobody applies to try and say there are no skilled workers in the US is just one example of current abuse of the system.
Isn't the correct response to the sham hirings to regulate that jobs are posted on a gov-run board for some period of time, ~30 days, before you can claim no qualified workers? That seems more reasonable than turning the spigot off entirely.
Not anymore. My PERM was cancelled for this exact reason. The job advert was put on LinkedIn and the company's website like any other job. They didn't hire the local worker either because they didn't pass the interview but my perm had to be cancelled bc a skilled local worker with "minimum qualifications" existed.
What you are saying used to happen but not anymore.