There is a problem with this statement:
I think in fact it would be disingenuous to those *without* a degree to underestimate their own ambitions that way!
It often isn't that these people choose not to get a degree, it is that they are (either for time or money) incapable of getting the degree.
No, I think you totally misunderstood it... I'm saying that those without a degree should not be treated any differently (besides maybe requiring a couple extra years of experience/practical work to make up for the lack of a degree) while you seem to be telling the OP "hire them, you can get them for cheap!" While there are some (usually very conservative/old school) companies that do look for degrees, that's completely not the trend in Silicon Valley these days. Hell, many of the founders never completed theirs, so it's almost ingrained in the culture to go for talent over education. So I'm saying, don't underestimate the earning potential of those people! And it proves out over the years. At least in SV, your pay is largely a combination of the *range* of the position (which can be highly variable) and something that matches/beats an employee's current salary. If you keep settling you will never get the pay increases...
The problem is that unlike highschool, college is not subsidized by taxes, and thus not free to the public good.
This is partly true. Private schools by definition, of course, are not. Though if you are going to Stanford or MIT you are probably going to be able to pay off those student loans quickly enough, anyway. Public schools IMO are the problem. How the hell can a public school charge $13k for tuition (which doesn't even include room and board). Well - we know the answer - because the US is no longer prioritizing education.
You will have to. OR-- you can be deluded, and hire 100% H1Bs.
Which makes a lot of this is fairly academic (again no pun intended) since there is such a shortage of decent SW engineers in the US right now that we are importing as many as allowed from India and China, etc. And those developers will pretty much always have degrees AND be cheaper to hire. Not saying that's necessarily a good thing, but it's the current reality.
In fact, the combination of skyrocketing US tuition and more talent from out of the county means it's really not going to end up being a decision of the company HR or hiring managers, it's going to be up to the US government to fix (whether by fixing tuition or limiting H1Bs). And given the new Republican Congress doesn't give a rat's ass about student debt (they are happy with charging 7% on Federal loans when you can get a freaking mortgage or car loan for 4%), and shrinking H1Bs would seriously harm economic/tech growth in the US in the short/mid term, it's likely that nothing will be done in the near future. Big surprise...