I have a lot of respect for people who get college degrees. I think it says a lot about their intelligence and their ability to focus. What I can't stand however are companies that won't even look at a candidate if they don't have a degree. They miss out on truly great people. Having a degree means something, yes, but it doesn't preclude the candidate being great.
I have to rely on persistence and connections to get work. In a way, it sucks but it's also a satisfying challenge.
When the day comes that I have to interview and hire people I will not take their degree into consideration. I'll use YC's approach and hire them for who they are, what kind of ideas they have and my instincts about what kind of work they can do.