Certainly increased acceptance rates for domestic students would impact which schools they go to. But do you have any data indicating that a) there are a significant number of domestic students who apply to STEM programs and get rejected from all of them and relatedly b) the demand for grad school positions is sufficiently elastic to match an 80% increase in supply?

I'm not sure what your point was with the casual dismissal of 70 years of research in every field besides lithography. Am I supposed to think that international students only work on lithography? Most lithography research, as far as I'm aware, doesn't even happen in academia.