I think this is less true today with all the game engines doing 90% of the hard technical work for you, otherwise I would agree. However, the question isn't whether it can show skill (it definitely can), but whether that results in a payoff (i.e. is being recognized).

> Do you want to work for people who are too to small-minded to realise the benefits of game programming?

Some people can't judge the merits of game programming, that doesn't make them small minded. Depending on where you want to work, you may not have much of a choice in those terms anyway.