This creates wage & price distortions. It's basically free-market reaction to the distortions of the tax & regulatory burdens companies face, especially regarding employment.
Perhaps. But in my city I see Hispanics doing things, running businesses, providing services that didn't exist a few months ago.
If what you say is true, that implies that businesses are purposefully breaking the law, which may be the case. In that instance, this GWB policy will rectify things somewhat at least, since workers may now register without fear of deprtation if they have a job (increasing the income tax base). Workers who have no job will still be subject to deportation.