"However, it is inevitable that disgruntled engineers and techies will complain about their plight, because someone will undercut their wages, and they want the government to "protect" their jobs here."
Actually, it's the government who's meddling in the job market on behalf of corporations by allowing that sector to be saturated with H1B visa workers.
I prefer the free market/capitalist approach without government intervention where corporations would be forced to hire from the pool of American workers, and forced to offer Americans a decent wage and jobs would be plentiful.
Instead, we have the government saturating the IT job market with an excessive amount of H1B visa workers, the type of government meddling that really amounts to government/corporate facism.
That's neither free market nor capitalist, and it requires quite a bit of government intervention to achieve the ends you desire.