"Degrees make sense though"
While this is generally true, it depends on what counts as a degree.
I used to think that a degree meant that the person had succeeded in achieving an advanced qualification, requiring learning and diligence and often independent thinking, without being watched all the time (like at school), and all the time exhibiting restraint against the worst excesses of the results of being free from parental oversight.
This lack of oversight was one of the primary differences between universities and polytechnics. Poly's kept a close watch on their students, and offered better support services to advise students and keep them on their courses. Universities often just let the students sort themselves out, or fail.
Nowadays, it seems to me that students are given subjects that are less rigorous, and also have much better support services that attempts to prevent the students from failing. This means that University is much less academically and personally demanding (although I acknowledge that there are financial pressures), resulting in the value of a degree being diminished.
I know that I am generalising. I'm sure some universities are still turning out excellent graduates. But many aren't, and this means that industry no longer values a degree as a guarantee of certain qualities, and that is what is damaging.
Bring back the rigour that a degree used to represent, and I will agree wholeheartedly with your statement.
P.S. I graduated in 1981 from one of the long-established universities, after nearly failing my degree at the end of the first year. The fact that I nearly failed was scary, and taught me a lot, and I believe that it enhanced my resultant work ethic and character..