As a Dev and CS major I can tell you that schools have gotten to be pretty good about teaching more than just the difference between merge sort and quick sort. My school offers things like Databases, OS, and even a web dev class this semester. Schools do so much to get kids to become good developers along side good programmers.
The problem is that the kids aren't trying to become good developers. How many college students in a class have a github (or some online code repo) that is publicly view-able? How many have a stackoverflow account and are at least somewhat active on it. What percentage of kids in a class will code a program outside of class just because they want to code something cool.