Sure, the system is broken but what's the alternative? Employers have a surplus of applicants for entry-level technical positions. They need to filter the applicant pool down to those with some level of competence and discipline. Possession of a college degree is a reasonably accurate proxy for those attributes: lots of false negatives but good enough from the employer's perspective.

Ideally maybe employers ought to rely on more targeted selection mechanisms. But this would be extremely expensive (and potentially legally risky due to equal opportunity laws) so most don't bother.