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Primary reason: The E3 is a non-intent visa, meaning that you can't apply for the Green Card on it. Your only choice is to convert to H1B first and then apply.

Other reason 1: You can transfer to another job easier while remaining in the US (if they do an H1-transfer). Doing so with the E3 is a huge grey-area with various blogs saying different things.

Other reason 2: If I get fired I have a few days to pack my life and leave the country. With a H1B I recall the period being longer to find another job.

I successfully went from E3 to Green Card without getting a H1B first.

It's a more annoying path (there was a ~6 month period in which I couldn't leave the US) and riskier (more ways to end up rejected). That said the H1B route would have taken significantly longer even if I won the lottery.

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