I'll admit that the currency has been cheapened by diploma mills and students in school just to shut up the folks.
The schools themselves have cheapened what a degree means. I always use the example of my father; he went to high school in rural West Virginia, when he graduated he could read and speak Latin. (OK not that useful but that was expected of him). In my day, it wasn't required to even study a foreign language. Today high schools graduate people who can't read or speak English. So, a high school diploma becomes nearly worthless. About all it can show an employer is that you can at least stick with something long enough to exhibit mediocrity.
Universities are spending their time teaching remedial classes. Stuff that a student should have already learned, but they don't mind because it is more money for them.
At the university level, Grade inflation has continued unchecked over the last couple of decades. I don't think kids are any smarter than when I was in school but somehow their GPAs are 0.3 higher.
I don't think a diploma today means as much as it did twenty-five years ago and to be honest, those twenty-five years ago didn't mean as much as those from fifty years ago.
I'll also agree that a lot of HR twits don't know the difference between ability and credentials.
I think this is the bigger problem. It's much easier for an HR person to have the computer examine a checklist, than to actually have to sort through the applicants and understand the needs of the company itself. Blame also has to fall on the person doing the hiring, they need to be more active rather than just have HR give them a handful of the 'qualified' applicants.
I absolutely don't understand what classes I took (or didn't take) nearly thirty years ago are a better indicator of my ability to do a job, than what I've actually been doing the last five years. Yet time and again I'm asked about my degree when applying for a job. I understand that makes sense when you are hiring for an entry level position but for a mid to late career employee?
Think about our field. How much of the technology we use today even existed two decades ago? Yet the first question HR will ask me, is what degree I have. How could we have studied about it, when it didn't even exist?