For "real" technology companies like AeroFS, that use a small fraction of the H-1B quota, it's about talent. For body shops like Infosys, WiPro, Tata, etc that use up the vast majority of the H-1B visas it's absolutely about cost.
Agreed. It's strange to read these kinds of articles. The author doesn't seem to realize that he is describing his own personal preferences, and not anything about society at large. All you need to do is look at the top recipients of visas and you will understand what the game is.
What author seems to be saying is - status-quo is not a solution. Is there a shortage of good engineering talent(I am not talking about bottom 50%), but top 20%? I think answer is emphatically yes - worldwide.
Has US benefited from those top 20% who have managed to migrate to US? It would be foolish to say no.
Lastly, this is on official company blog. It is not politically correct to publicly lambast companies which are abusing visa system. But that does not make Author's argument weaker.