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Having had to work with people, manage people, hire and fire people. I would say that having a higher education does not equate to a persons level of smartness, knowledge, or intelligence in any reasonable way.
Maybe, but I figure if every single one of them has a degree, the odds have to be in their favor that at least one of them is smarter than me. And if not, well I just proved how dumb I am by thinking that. QED.
That said, you're right, too many places hold that degree in too high esteem. It wasn't important for the first twenty to twenty-five years of my career, but now I'm finding it really puts a ceiling on how far I can go. I'm working under tech leads who have fifteen years less experience than I do. Have to see if I can get hired internal from my contract (which takes special waivers for non-degreed folks) and then advance internally.
It was so bad, when my last contract ended, I had two managers invite me to apply for openings with them and my resume was auto-rejected by their hiring system.