They have issued this interim rule to address the 'cap gap'. I think, those on extension will likely be greeted with another fruitful news by late 2008 when they will remove cap for US educated students.

I have read some news analysis in the past weeks, where the legislators have concerns on increasing number of H1B from Indian companies based in US. This initiation will likely curb the direct H1B recruitment from foreign lands (mostly India), and will benifit those who have studied hard in the United States itself.