The best employee I've ever had wasn't a Computer Science or MIS major (I believe he switched later). It was an accident that I even got his resume (coincidentally, a staffing intern at my company mixed it up. It was due for the bin [HR and staffing are for another rant, I'll leave it alone this time]). He was a brilliant guy. He interned for the half of the summer. In a few weeks he went from zero experience with databases and directX, to developing a solution using both technologies (he wasn't a magician, the end-product was good, but required some reworking of code due to his applying knowledge from one language to another, but it was done, usable and with a bit of work supportable). We offered him a full time position on the spot and he declined (he wanted to be in academia at the time, but ended up in industry a few years later).
Degrees are important. Experience is important. Intelligence is important, but being intelligent and having degrees doesn't equate to success or the deserving of success. I used to work with a guy who was the sort of guy you wanted to go out to lunch with (if you're a geek). Very intelligent, had all sorts of ideas, could talk about anything related to his field (networking) and would challenge you to think about things differently. Unfortunately, he could talk all around theory, but he couldn't execute. It was a strange sort of inability to choose between several equally good approaches to solving a problem. Every project he worked on got about 3/4 to completion and then fell flat into failure.
And of course, the story of my two coworkers is certainly not a rigorous statistical understanding of the world. It's my observation mixed with bias. But it's worked so far in finding good, terribly unqualified individuals that can produce far more than they take away from me in time-spend.