well, they are "worse off" compared to their non-H1B counterparts here but are way better off being here as opposed to staying in India, which is why they are here in the first place.
Money isn't everything. Being put through the bodyshops, the stress of making ends meet on those low wages, and not really being able to do things outside work takes it's toll.
All of above is true! H1Bs have to go thru some agony for 5 years or till they get Green Cards. But all of my friends who landed on H1B in 2000 are doing great in 10-15 years now owning multiple homes and many running own businesses. You should also take into account that H1Bs do not carry heavy Student debt like American students do. They get inexpensive education abroad and start working the day they land in USA. They also share accommodation and save money in case they have to go back to home country. I've also worked for a decade with Indian outsourcing companies and understand their business model. As businesses responsible for creating shareholder wealth, they run for profits under current legal framework and even IBM, Accenture, Deloitte, Cap Gemini and other large Multinational consulting firms employ hundreds of thousands of employees in India and bring them to USA on H1B visas in similar business models. H1B reform is important but even more important is to train US students in new technologies. I'm a naturalized US citizen living in San Jose for 17 years. My son is in high school in San Jose and by the time he is ready for college, the 4 year college cost will be $200K. I think that needs to be addressed along with H1B reform. We need to lower entry barrier for US students to get into Science and technology by making college more affordable.