Should scientific undergraduate degrees exist?

So I'm sitting in my materials science lecture at Stanford and my professor bluntly stated: "all of you have to go to grad school to get a job."

There's a decent debate around not going to grad school for the "fuzzier" studies (language arts and so forth). E.g. http://www.martynemko.com/articles/case-against-graduate-school_id1528

However, since everyone seems to agree that all hard-science and science-intensive engineering undergrads need grad-school to get a job, why not combine the entire B.S. Degree + Master into one degree?

Oh but what about PhD candidates? Simple: get a master equivalent with that first degree and skip straight to the qual exam.

thoughts?