> It's a loophole?
Well, call it what you want. Originally the H-1 program was for temporary non-immigrant workers. Intent matters when someone enters any country -- if someone is determined by the immigration authorities to have intent to immigrate, but only holds a non-immigrant visa or waiver, they'll be denied entry.
In the 90s the H-1 program was made dual-intent, as in, intent to immigrate would not disqualify someone from entry, setting the stage for the present mass exploitation of H-1B workers.
> what other way is there for someone to immigrate?
Like I said, US immigration is racist and broken. I don't know how we solve it, aside from obvious of creating other paths to legal immigration and phasing out H-1B's dual-intent status so that immigration doesn't turn into exploitation.
From the immigrants' perspective the obvious thing to do is vote with your feet -- go somewhere else or stay in their home country -- but so many people want to come to America that it's hard to imagine reaching a critical mass to effect policy change.