Overall, I think it's still credible, but less credible than before, and heavily depends on your situation.
I run a program for students as a replacement for university, so I'm a bit biased when it comes to this discussion. It's useful to analyze both what a student want out of a degree and how a degree is "consumed" by another party (ex. an employer).
1. University degrees are still the "gold standard" in socially accepted proof-of-education. I think this is mostly due to social momentum. A few years of a "bad batch", ex. due to rampant cheating etc, will not change this. When I talk to other hiring managers, it's a bit of mixed bag. Some sorta understand where the students are coming from, as they also think that a lot of courses etc are arbitrary. Others are more concerned about the ethics of cheating, and the implications on a student's character, rather than the education outcomes ("I can work with inexperience, I can't tolerate lying").
2. If you're planning to pursue a heavily regulated profession, like medicine, you most likely need a degree.
3. As others pointed out, the university criteria now more closely resembles a toll someone must pay to access higher-paying jobs. Ie. it's less about education than gatekeeping. Having it doesn't make you qualified. Not having it disqualifies you in many people's eyes. I think this is partially driving a lot of the cheating. Students sense the disconnect from the university program (and schooling in general) vs real skills. It's just another hoop they have to jump through so they will choose the path of least resistance. For many parents, it's a sort of capstone project for a parenting job well-done. And that adds more to the complexity.
4. How you take advantage of your university experience matters. I wouldn't count on the university for a durable education, ie. actually teaching you things that will make you successful. You need to get that elsewhere (thus the emphasis on work experience). But the social momentum is important, as universities are social centers for young adults, so you may get socially isolated if you don't go. In this case, the value is in the network, not so much the programs etc.
The university experience, despite it's flaws, is still the status quo and definitely the safer "bet". Unless a person have clear understanding of why they shouldn't go, they should probably still go.