> Another problem is that just because a person graduates with a degree in X, doesn’t mean they are any use at X

Perhaps true, but this:

> I know a bunch of CS degreed people who got out of virtually every coding course in university.

is arguably a different problem, because CS isn’t Software Engineering, though the right focus within CS study can be a good preparation for work in software engineering.

> They are technically part of the group of potential employees for technical work,

If they aren’t working as software engineers and aren’t seeking jobs as software engineers, are they really?