Foreign engineers are not really that much better or smarter than american engineers...they are just willing to take less pay and are willing to work more hours...
It also needs to be stated that H1b's are on work visas, so as soon as the company has no need for them they can ship them back and the H1b really has no recourse for action...yes, as an IT manager at my current company anytime we have a project their is always a few managers who make the statement of "why don't we just hire some H1b's to do it and ship them back when it's done" instead of hiring local full time Americans...
I worked at the largest computer engineering company in the world for a few years and inside of 8 weeks they could turn a 125 k american senior electrical engineering job into a 55k H1b job...
The point is moot now though, as most american engineers are hip to the game and are looking to get out of engineering, and most young people who would be engineers now look at it and decide the return on investment is not enough. I know two very bright young men who would have made good engineers, but got into other fields because they look at the industry and say...why would i go to a 4 year university and rack up college debt to work in an industry where the salaries are trending down and more foreigners are being brought over to work every year...
And trust me, as someone who has to hire for senior level engineering and IT positions, foreign engineers are not that smart