Here's the thing: on the first read, I chuckled, too. But think about it: maybe you'd want possible grad students cracking hard-core encryption, but if you set the bar too high for possible undergrads, you're not going to get anyone. I'd say there are two major reasons for this: one, to encourage interest in the college; two, for interested students to prove some level of competence in programming. Don't forget that a college wants smart students, but not students that believe they already know everything.

-Mike-