H-1B was not setup as a path for graduates to stay in the US. It was intended to allow highly skilled workers in and has been gamed since then to do all kinds of things.
That said, I think a permissive immigration policy is in our intrests, but H-1B is a poor basis for such a policy.
This is true, but on the whole immigrant college graduates are typically a boon to an economy, not a drag. It's in our best interest to keep these people here, rather than shipping them back home.
We do not need more entry level candidates. By allowing the importation of entry level workers you deny graduates the chance to receive training and obtain valuable experience. There's then little incentive for employers to train fresh grads.
That said, I think a permissive immigration policy is in our intrests, but H-1B is a poor basis for such a policy.