Yep, this is true. But that just means that it's something of a super power for organizations that don't make this myopic mistake.

You're not wrong, but thankfully job openings are more fungible than ever too, with remote positions open at plenty of companies that won't make that particular (not-)hiring mistake.

Remote positions make it easier not harder to find someone with the skills fit that a company needs and makes any position more competitive.

When companies were looking for “a C# developer who knew the latest front end framework who was willing to commute to the office in midtown Atlanta” the pool was a lot smaller than “someone legally allowed to work in the US”

Actually it is more like legally to work anywhere, for some kind of positions.