It may be a question of perception more than reality. But a lot of people in various areas of engineering are either losing their jobs or seem to think they may. In either case, it's tough to convince bright students to take on what is already a challenging field of study if they think they might be outsourced to Bangalore or just plain thrown overboard when the next round of downsizing hits. Better security in being a lawyer to sue the pants off of businesses or individuals, or be a corporate officer in charge of outsourcing/offshoring. So, fill out the ranks in the law and business schools and forget engineering and science as a profession.
What you are suggesting is loser talk, typical of folks who are scared to compete. You are literally suggesting that US hand over its entire R&D to Chindia because future is over there ? You want US to be a nation of lawyers and bankers, while science and engg are being done in Asia ? Who are you, some liberal socialist ?
You are generalizing a bit too much.. R&D jobs wont be outsourced to India/China even though it would be lucrative to do so, because those jobs need people with advanced degrees which majority of Indian Indians or Chinese Chinese lack..
Those who come to the states to pursue higher education will eventually settle down here (which is a good thing) and contribute to American R&D. This trend is not gonna alter, because Chindia can never compete with American infrastructure or funds.
p.s. dont take my initial outburst to heart, I am just a bit irked when people use the bogey of outsourcing to discourage youngsters from taking up science and engg, and moreover research in those fields.