I don't get the higher status part. Why would big tech companies, for example, be more favorable to immigrants than americans? There are a lot of companies that will reject you simply because you are not american/greencard holder.

Obviously personal opinion but I don't think gutting H1B will lead to more jobs for americans or just more jobs in general. I can't predict the side effects, but I doubt the tech industry is going to stay the same

If H1Bs disappearing doesn’t result in more jobs then there was never any point in hiring H1Bs in the first place. Just trimming the fat.