Earlier quoted context omitted.
If you are referring to recent proposed visa changes, you appear to be defining dysfunctional as not passing visa programs very beneficial to a tiny group of people: incubators like YC, and owners / large investors in tech dependent startups. As not a member of those groups, that's quite a stretch.
Given that I also mentioned state and local government, it should be clear that I'm referring to more than just immigration issues. I get your point though. I'm an evil capitalist who doesn't want to fund Americans because they are unwilling to give up 7% equity, or something like that. Maybe you think that Sergey Brin and Paul Graham stole their jobs from some hard working, native born Americans. That's the problem…
I think that this can be alleviated without being anti-immigrant though. For example, make it easier for H1Bs to move between jobs and/or start their own businesses so that they don't have to feel so tied to the employer that they don't want to risk 'rocking the boat' too much. Or make it so that switching jobs doesn't 'reset the counter' on building up towards citizenship (or is it just a green card, I forget).