Even in IT...
IMHO, IT is the worst example of degree and certification flashing, because most executives have no idea how to properly evaluate them.
This is all from the 90s, but I was having a conversation with my boss at the time about the 'degree/credibility' misnomer. He claimed the same as you, I said "So getting drunk for 4 years on mommy and daddy's dime is worth more to the company than someone who's worked in the field while raising a family?" The difference is that I knew that example is just as misguided as my managers assumption.
When I get a call that a programmer with a 4 year degree from an expensive school 'needs more memory', and I can walk over and without looking at the code tell him he's put himself in an infinite loop, there's an obvious issue with education.
Fortunately, I believe, more knowledgeable - rather than educated - people are moving into hiring positions, hopefully alleviating this issue in IT.
