Earlier quoted context omitted.
The problem with this is that H1Bs are not just for software engineering jobs. Other professions that qualify are things like accountants, or health care workers. If it was a straight up "who pays the most", then the software industry (mostly FAANG) would end up with 80k H1Bs per year, and other industries would still not be able to hire for jobs they can't fill locally.
There's no such thing as "can't fill locally", there's "can't fill locally right now". The sacrifice to the "right now" bit is immense, it destroys incentive to learn pretty much anything.
If I just keep offering to pay more, then yes, I will eventually be able to hire a nurse that was previously employed somewhere else, but now _that_ person needs to hire a nurse. No matter how many times you go around this circle, there are not enough nurses for everyone to hire.
That is a shortage. A shortage doesn't typically come with the asterisk of "but if I wait long enough then maybe there won't be".