Great story. Very impressed by your persistence and creativity, and congratulations on your success.
I think the concept of employers applying for a green card for employees is fundamentally broken. It pits the interests of the employer directly against the employee, since it's in the employer's interest to drag out the process for as long as possible, and reduces job mobility (which brings down wages for everyone) because the green card process needs to be restarted if employees switch jobs midway, before the I-485 step.
A system where any legally employed foreign worker can file for a green card for themselves seems much more sane.
Anecdotally, it seems to me that wages for H-1B visa holders are only lower when the employer files for a visa for an employee who is outside of the country. In my experience as a student who went the F-1 -> H-1B route, salaries are the same whether or not you have an H-1B. The much wider set of employers that you can interview with when you are already in the country probably makes it infeasible for employers to pay their H-1B employees who were already in the US under a different visa less than employees who don't need a visa.