That's your interpretation.
The illegal alien will have to pay a fine or fee to obtain a blue card, while the alien abroad can obtain the blue card for free.
The illegal alien has to make a choice of whether to return to his country and obtain the blue card for free, or whether to apply in the US and pay the fine.
Furthermore, the blue card does not lead to US citizenship. Period.
The amnesty given by President Reagan lead to million of new US citizens.
And may I add new voters!
To me this looks like we've added a new type of guest worker --- only it's going to be millions but this won't solve the problem with massive migration and much of it illegal.