Obama will be painted as weak-on-immigration by the right regardless. So there's no up-side to him ignoring the larger immigration problem or H1B in particular.
(H1B should be a short path to a green card. Letting them be taken advantage of and then sending them home is a bad policy.)
In the long run, one might suspect that it helps most workers (being part of the economy in general) to have a larger pool of skilled labor doing productive work.
(H1B should be a short path to a green card. Letting them be taken advantage of and then sending them home is a bad policy.)