The post at geeknews doesn't make much of a statement except in the title, but since this is a generally inflammatory topic, they've earned a pile of readership from that alone. And to prove I'm not the guy with the degree trumpeting the wonders of elitism, I went to a second-place state college. Even that was a better education than I could've managed on my own, but then it doesn't take MIT to do that.
I've been a vocal supporter of bootstrapping your way into other careers for a couple years now, but recently have changed my mind. I think the question of degree vs. hard knocks goes deeper than the "value of an education" or "real-world experience". Those are great things, but what will really turn a journeyman to a master is deliberate practice (PDF).
According to Ericsson, et. al., to really be deliberate practice, not just any task will do:
The most cited condition [for optimal improvement] concerns the subjects' motivation to attend to the task and exert effort to improve their performance. In addition, the design of the task should take into account the preexisting knowledge of the learners so that the task can be correctly understood after a brief period of instruction. The subjects should receive immediate informative feedback and knowledge of results of their performance. The subjects should repeatedly perform the same or similar tasks.This probably sounds obvious, but take a step back. What they're asserting is that learning is doing. It is a task. You can sit on your ass reading CS articles on Wikipedia for 4 years and never learn how to write a program. You could even read through MIT's "Structure and Interpretation of Computer Programs" course material for free and not learn a damn thing about Scheme.
Whether you're learning from Wikipedia, a professor, a colleague, or a book, you're not going to start learning till you care about the subject and start stretching. A great programmer is one that is not afraid to do just that, and at the end of the day it doesn't matter whether he went to college or not. He will be great because he wanted to be and was not afraid to do what it takes to get there: intentional, deliberate, ongoing practice.
This practice of learning has been around much longer than universities. The system of apprenticeship survived for thousands of years. Any good tutor can create the above conditions for their student, but at the end of the day it is the student that must put the work in, not just the reading. Or the student can put that work in even without a tutor, though it will take much more effort.
So when hiring, look for the curious, unafraid, diligent one. Don't let a degree fool you into thinking that, just because they had the opportunity to learn, they did anything but read.
Further reading: A Reg Braithwaite post in a similar vein.