Employers only worry about placing arbitrary requirements on jobs when they are receiving more applications for jobs than they can handle. The requirements become a fast way to cull the numbers to more manageable levels for personal review. That they are now seeing more applications than they can handle highlights that competition is starting to heat up, and with more competition comes more difficulty in finding work and lower prices as people start to undercut each other to secure a position.
The stereotypical college dropout lifestyle goes part and parcel with the get rich quick view of the Valley. Even five years ago nobody would have ever suggested a tech job in the Valley requires a degree. It wasn't that many years ago that we used to joke that tech employers in the Valley preferred people without a degree. According to the article, that is no longer the case. When one starts to fade, so does the other. But it is all bound to happen eventually. After all, the cure for high prices is high prices.