Does the degree even establish much anymore?
No, it doesn't. In fact, in our experience they are completely and utterly useless even when trying to make the argument that they "teach you how to learn".
We've been trying to fill two Jr. engineer positions; this is a position we feel is perfect for a recent college grad. Every applicant, without exception, has a Masters degree in Comp Sci.
They can't make it through our technical interview without extensive hand-holding, almost to the point of you having to do it for them. And I'm not talking about syntax; I'm even willing to be lenient in that dept. since it's on a white board, most of them are new at interviewing, etc. I'm talking about fundamental problems with logic - they aren't able to figure out fairly simple, straight forward problems. I've had candidates that couldn't properly create a for loop, and even after walking them through the logic (You can have *two* conditionals there ... what would those look like?) they still don't understand it. Yes, really. With a Masters degree.
And the ones that don't even make it through the phone screen? I question what it is they've been doing for the last 6 years, because it certainly didn't involve learning anything; basic questions about data structures and theory? Yeah ... not so much.
We've had to seriously beef up our phone screening and pre-screen test so as not to waste time bringing people in. We recently hired someone from the NY State University at Buffalo ... he was the first one who was able to walk in and simply breeze through the technical interview, and actually understood what he was doing. I highly suspect he didn't need to waste 6 years and who knows how much money on the degree.
Between phone screens and on-sites, that's probably a one-in-100 for us at the moment.