In that case, it also means they think degrees are worthless because they assume everyone cheats to get them.

I'm not denying you can get equivalent, even better, knowledge and experience otherwise. One of the best devs I know has a degree in philosophy. However, some of us know what we go to school for and we make it worthwile.

I think the point is more that having the degree doesn't guarantee anything, and that not having a degree is not a barrier. You still have to do an interview with the candidate, and there will be many self-taught devs who will be much better than the people with degrees.

I think people are wrong about what a degree proves.

Sure, it's no 100% guarantee, but it should at least mean you're familiar with the domain enough to find the answers you need.

You said yourself it entails loss of sanity and time - agreed, completing one shows discipline, character, time management skills and enough sanity that you can afford to lose some. Again, it doesn't mean people without a degree don't have these things (self-education can require some of them even more), but that's one way to demonstrate them.

Finally, there's different degrees, mines are from MIMUW so they do prove quite a lot.