Accepting Vance's premise, is he saying that the solution to replacing American workers with indentured servants is... removing the path out of indentured servitude? It sounds like they're not touching H1-B itself, just the path from H1-B to residency.
They've been limited in what changes to H1-b they can make without legislative support, so they will take any other option to make H1-b less desirable and harder.