Tradeoffs exist.
It's understandable for everyone to have varying views on immigration and immigrants, but this sort of rhetoric is a vile, racist and xenophobic dog whistle.
The homeless person thought experiment is meant to illustrate the existence of tradeoffs. "The cruelty is the point" is essentially rhetoric meant to demonize political opponents, and sweep under the rug the existence of tradeoffs and differences of opinion.
If immigration is such a good idea, people ought to be able to defend it on the merits, instead of pearl-clutching and playing dishonest rhetorical games.
I'm not exactly sure what is so racist or xenophobic about my thought experiment. Homeless people are people too. I'm tempted to pearl-clutch just like you, and accuse you of denying their humanity. Want me to do it?