I agree completely that a degree will benefit somebody with real world experience more than a complete newbie - but that applies to any subject.

(My partner is convinced that nobody should be allowed to do a degree until they're at least twenty five - until then they won't be able to appreciate it!)

The problem I get with new CS graduates without real-world experience isn't that they've forgotten stuff - it's that they don't realise that there is a lot more left to learn: working in teams, maintaining somebody else's code, having to talk to clients without sounding like a patronising know-it-all SOB, the ability to talk to people without degrees who just happen to know a lot more than they do, etc.