Again… programming and web design are not the same, but honestly I know a lot of “highly educated” programmers/developers that still do not write good code. Our lead flash developer, and our former lead flash developer are among the top in thier industry. They both have presented at national seminars, and have large clients from all over the world, and are both self taught.
Yes, there are companies that will look for a degree before they look at anything else… most of them are corporate entities that most likely need inhouse people, and arent the types of places i would like to work anyway. Besides, if you have half a brain, you could get around that and let your work speak for itself.
Another thing everyone needs to understand… A Graphic Designer is not a Web Designer, and a Web Designer is not a Graphic Designer. Some people understand the differences and can handle doing either, but its a rarity.