A person living on the streets could very well be a fortified genius and the world would pass him by because he has no degree. On the other hand, those with degrees could be dumber then a sack of hammers and the world would recognize them because of their degrees.
I agree with most that you say, X. I believe that people need to be measured by talent rather then social status and everyone should get equal opportunities, but the high College fees (in America mostly) damages that equality. It's a big problem.
However, people with degrees being dumb? You need to be quite intelligent to get accepted into a high-education institute, and make a real effort to get a degree. Cheating here is almost impossible. I would like to believe that people in good Colleges and universities are smarter than the general population, social abilities aside.
It's true that many talented people are wasting their lives on the streets, and it's a shame. It's true that if you're talented enough, you don't need a degree to be successful.
Nevertheless, most employers today cannot measure their employees' intelligence in a better way than relying on their education. Not every job requires you to have a degree, but almost every employer would prefer a worker with one.
Let us be realistic. People do the right thing when they demonstrate for a more equal society, and demand social justice. But our society is a competitive one, where the best are successful, and the rest are cast aside. It's always been like this. If you're talented and work hard, you SHOULD be successful. If you're not, then there is a problem in the society, which must be resolved. Eventually, a healthy society is one who provides equal opportunities. Complete equality, however, is impossible. Not in our world.