That is an incredibly patronizing attitude to have. They are 'limited' because they use a very sensible method to screen applicants?
It is very true that not having a degree shouldn't be a bar to employment, but the process of getting that piece of paper does display a level of discipline that is very important when it comes to getting things done. I know that someone with a baccalaureate in mathematics or any of the sciences has had to work very, very hard in order to get that degree, and that they have needed to do a number of things which they considered obvious and boring, because those things were essential to getting the job done.
I know there are people who don't have degrees who have that sort of dedication; in fact, one of my friends fits the bill perfectly. These people will demonstrate their value in other ways, but the majority of people who blow off college are, frankly, lazy and disorganized, and often think that they are much more skilled than they really are. This goes double for programmers, who already have a natural habit of overestimating their abilities.
From the perspective of an employer, I would think very carefully about hiring someone without a degree. I would probably not even consider hiring someone without some college experience, unless they had a stellar work record and about a mile of ironclad references.