Meanwhile I'm back in India, and completely lost in my mind on where and how I should proceed with my career.
I'm of the view that a country can choose whatever the hell they want about who to let in. Just stick to some rules with some consistency though. I came to America believing that there was a path that works a certain way, and that I could Hope for a better life in America if I follow it and work hard. Clearly your country hasn't kept your side of a gentleman's agreement there.
I suppose your friend is right, we Indian abd Chinese PhDs are idiots to think America is a fairer country than wherever we come from.
I spent a decade doing things in the US and am stuck knowing more about how the system works in the US than how it does in India. All my twenties have been wasted a bit because of this. And India is not the greatest of places to deal with either, though at this point it's up in the air which ones worse! Perhaps that's the state of the entire world as well.
For what it's worth though, in spite of the inequality, healthcare, partisan politics and things, I will much rather still work in the US - it's a more exciting place to be than anywhere else I have ever been
Your situation is like many others, and obviously not ideal. The system that you were using was/is blatantly rife with abuse, please don't think everyone who hates H1B is stupid/evil. If there's anyone worth lashing out at, it's all of the 'consultancy' services that have given the program a big black eye.
On another topic, the American PhD's quote doesn't make sense without context. Why "mediocre" scientists are the issue for scientific "competition"? The proportion of top people is always low, scientist or not. It's the system's fault that the whole scientific process becomes a "competition" in my opinion.