Ryan wrote: ...it will benefit America if we allow them in, because that way we won't be considered racist. And that is of paramount importance.
They forget that the point of immigration is to improve America, not make it some sort of charitable bastion for the world's losers.
I agree with your last statement. We do need to revamp our immigration laws to focus more on economic outcomes like increased productivity and investment. However, the judges are not being activist. They are interpreting the law as it now stands.
It is not because we want to be seen as not racist, it's because our old immigration laws were explicitly racist and were struck down as unconstitutional. The lottery system was instituted to avoid that.
We also instituted a policy of being more focused on benevolent things such as family reunification. It's Congress that needs to come up with new regulation. The SCOTUS is just applying current law and the spirit of that law.