>Its disingenuous to think everyone needs to obtain that level of knowledge, at substantial cost, when only a few are going to use that knowledge in the scenarios you described. Not everyone needs to know how to create programming language or write a complier.
This knowledge is usually what separates someone with a degree and someone without one.
I don't look down on someone without a degree, but I have no doubt in my mind that such a person will have a higher chance of being less capable of implementing high concept applications like a ray tracer, a 3D engine, search algorithm, operating system, or a machine learning system, ... etc. These jobs are not so obscure that only a 'few' people need to know it, as you seem to indicate.
In fact there's a popular new buzz word in CS called "Big Data" where those involved need a huge amount of theoretical knowledge that cannot be gained from simply attending a hacker school.