This is absurd. These universities aren't diploma mills. They're solid institutions in the "directional state U" tier.
The Georgia university system has a set of goals for the advancement of the state of Georgia. It's difficult to make an argument that graduating seniors performing above average are unworthy of higher education, and that this would be best for the state.
Georgia, like most states, recognizes that not every student will fit in every situation and has options to help most/all of them. Georgia Tech is very different from UGA. Both are very different from the network of community colleges.
I would suggest that your position is a minority position. In particular, that view is out of step with most employers, who generally require college degrees (even non-technical ones) for most white-collar jobs.
There's a lot embedded in here that for political reasons I'm not going to get into.
Back on the subject, I will just saw the GA university system regents disagree with you about the purpose of the GA university system. Successive state legislatures and governors have broadly supported, over many decades, their view of the purpose of the system.
I used to tutor CS students at several different universities during my first two years at college. I would bet my arm that none of the ones I taught from KSU wound up with a career in software.
The student perspective at these schools is that they're there for the credential, not for the learning. Even at the risk of false negatives, I would actively filter out resumes listing schools like these. I would much sooner interview a non-degree holder.
I took a group project game development class and it went beyond doing all the work in the group, I think I did all the work in the class.
Two people I know did graduate then change careers and become successful animators on Archer though.
At GA Tech the quality of students were better, but it mostly seemed to me that it worked by beating everyone to death such that you washed out if you couldn't work nonstop. They still weren't especially good eg not a single other student knew what version control was.
(The area code is also one digit off, 404 vs 408!)
I am occasionally on hiring committees and use a rubric for ranking candidates. The rubric usually has 8-10 yes/no questions that might be best summarized as "Does this applicant's resume and cover letter indicate that they have actually written code deep enough to 'map' to our requirements?" Some of the rubric may be a little more specific to the actual job role, but the main idea is to filter out what I have come to think of as "aspirational" software developers.
I think one nice thing about the rubric approach is that candidates don't score "prestige" points or get "penalty" points for their specific educational background. Honestly, it seems like a lot of students from many institutions (some quite well known for rigor) are mostly about the "credential, not for the learning." The rubric seems to effectively filter out the less skilled or interested without eliminating skilled candidates with less "sterling" credentials.