How do you reconcile the fact that the individual could barely program, but they graduated from what you consider respected CS programs? Or are you saying that the programs have a public perception of respect that you personally don't believe they deserve? If the person passed that institution's examinations, then it seems to me that you're indicating either the institution has low standards compared to your industry or that they erroneously passed someone who did not meet their standards (either through incompetence or deception). I think it's relevant to note if the individuals graduated with a high GPA or if they barely scraped by.

Of course autodidactism exists, but it can be very difficult to judge an individual's abilities based on one interview alone. A degree from a university at least indicates that the individual was exposed to the subject matter for a number of years, tested by individuals in the field who themselves have advanced credentials in the field, and passed the institution's examinations of knowledge. This isn't to say they're better qualified, but it gives you information that's more difficult for an individual to mislead you with. I can safely assume that a university has taken the expected precautions to ensure an individual's grades and credentials are reflective of their own work, as opposed to a self taught developer showing me a portfolio that may or may not be their original work entirely.