I don't doubt your story. The problem with anectodal evidence is that it doesn't show the whole picture, just one small sample size. From all the postings I've read, it seems the software/IT sector is where most of the complaints are coming from. I can see experience in the latest software revision being exploited by the contract companies you mention. I can't envision such a change to be a hinderance to employment. But that doesn't seem to be the trend in other sectors. I'm a research scientist and I know a lot of people who have immigrated to the U.S. on H1B's and they all receive very good compensation. That being said, most of these people are either from Canada or Europe, not from a third world country. We all have some type of technical expertise (PhD level research experience) in specialized subjects that better fits the criteria of the H1B program.
I can certainly see where a more specialized, higher educated industry would be less inclined to see the exploitation of the program. There just aren't the numbers to throw against the corporations that there are in the relatively less-skilled industries like software development.