It’s a shame that I had to scroll past pages of invective and name-calling to get to your comment, which is the first one to substantively deal with the policy change.
Like you, I tend to think this is a ham-handed move, but like one of the sibling comments, I also have to acknowledge that it’s common for other nations to require change-of-status applications happen outside the country. For example, Japan requires this for some (but not all!) visa modifications.
Also, I’ve seen otherwise reliable sources making unsupported claims about this (e.g. “Existing applicants will lose their ability to apply again if they leave the country”) that aren’t clear from the minuscule amount of information that has been released so far.
As usual with these debates, the content is far more heat than light.
I think one of the primary divergences of thought happening here is whether H1B is indeed a temporary visa or whether it was meant to be a stepping stone to a green card.
H1B is only 36 years old. The Immigration Act of 1990 always meant it to be a temporary status, which is why it is so easily imperiled.
It's a shame you scrolled past pages of comments and missed the point entirely.
The fact that it's "common in other countries" is entirely irrelevant to what the United States does.
It's not even clear it's common in other countries. Japan is notorious for being insular.
This is a garbage move by this administration that flies in the face of decades of precedents _in the United States_.
Japan only requires leaving for converting a tourist/digital nomad visa and some Working Holiday Visas to a normal working/spouse visa. And WHV to normal status is really dependent on the partner country. For example Australians don't need to leave, but Canadians and Brits do, and I've heard that immigration will sometimes just grant the change of status anyways. So that seems to indicate that Japan doesn't really care.
Needing to leave to convert a normal working/spouse status to PR is not the norm anywhere.