I am aware that this is allowed. However, the DOL describes the program like this: [1]
> The H-1B program applies to employers seeking to hire nonimmigrant aliens as workers in specialty occupations or as fashion models of distinguished merit and ability. A specialty occupation is one that requires the application of a body of highly specialized knowledge and the attainment of at least a bachelor’s degree or its equivalent. The intent of the H-1B provisions is to help employers who cannot otherwise obtain needed business skills and abilities from the U.S. workforce by authorizing the temporary employment of qualified individuals who are not otherwise authorized to work in the United States.
So I understand why people would be confused or upset when nonimmigrant aliens with temporary employment authorization end up immigrating.
I also agree that allocating a limited number of residencies by country of birth is pretty bizarre. There are some countries where the whole population could get a green card in a single year (if they were all eligible), but people born in Mexico and India have a 20 year backlog in some categories. Some sort of population or land area factor should apply. The impacted countries may want to consider strategic division to improve their US immigration backlogs ;P and they could gain more votes in the UN General Assembly, too.