In my ten year career, I haven't found there to be a correlation between having a degree and being a good developer. I've worked with a number of awesome people, most with degrees, some without, and plenty of bad people, most with degrees, some without. To me, a degree isn't a positive nor a negative signal for anything. You can talk about value of the intangibles outside the education component, but in my experience, a degree doesn't necessarily confer this either.

EDIT: Actually, thinking about it further, I haven't come across many bad developers without a degree. This is surely selection bias: bad devs with a degree can hide in the bowels of BigCo with HR departments who don't actually know how to hire good people, but absolutely require a degree. The bad devs without a degree can't get these cushy, hard to be fired from positions, and therefore don't last very long and probably find another line of work.