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How do they lose out if they find someone that meets the job requirements? Really they only lose out if they settle for somebody who can't do X and has a degree when there was someone who could do X and doesn't have a degree, assuming X is more important than a potentially well rounded education (quality obviously varies and I agree it is not a HUGE boon for most jobs).

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I agree with your sentiment. However I think a well rounded education is important, having a group of well rounded individuals in a team will be more productive. As a hiring manager I think about the team also and not only the individual I am hiring.

I'm sure your right about one needing to be able to work with a team, and having a well rounded education may well be an indicator of that, but I can't say having a degree has been something I've been able to connect to it.

They lose out by screening out those who may have much more experience with broader capabilities and are more productive overall.

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