That's just outright factually inaccurate. Are you expecting employers to hire on blind faith? If employers are hiring without evidence to support your skill-set, then their hiring process is broken.
> Observe how it worked out for everyone who got a degree because employers won't hire without one, and then they don't get hired regardless of that degree.
I don't have a degree, I got my first job because I walked into the interview with a portfolio; more specifically a fully functional completed piece of software that I live demonstrated. This wasn't an open-source project, but I sent them the code to be reviewed nonetheless (I own the IP).
The reason some people with degrees don't get jobs is because people with portfolio's (irrespective of degrees) can demonstrate their skill-set, where as waving around a piece of paper and having no demonstrable skills makes it extremely difficult for a potential employer to evaluate you.
> It is a slippery slope where we allow employers to dictate uncompensated signaling necessary for a role.
I do somewhat agree with this. However, your portfolio need not be open-source work, it's just common as there's some proof (version control, although not tamper-proof) indicating you did the work you're claiming you've done.