[bkhl]

I doubt that Google ever tried to hire only MS/PhDs. I went through interviews and got an offer when I was only a BSCS student. I also know a lot of people who don't have MS/PhDs and work at Google.

On your 2nd point, I totally agree with you that self-taught programmers should actually get a degree in CS or any related major. Although the programming classes might bore them out, there will be courses and professors who will take them to somewhere they would have never known before. This is just my generalization and, of course, will not apply to everyone ;)