Not everyone learns to program because they want to devote their life to code and worship the bit gods. I am in a similar situation as you and I have noticed quite a few students like you mentioned. My question is, whats so wrong with them getting a degree/job doing something they enjoy even if they aren't a rockstar at it? Is it so wrong for someone to want a 9-5 job doing something they enjoy? Yes they can't compete for "real" developer positions, but maybe they don't want to live in the valley and work 80 hours a week on a Facebook for cats and then hope Google buys their company. The truth of the matter is there is a ton of crappy code all over the world making things run and making people money. You don't need to be a rockstar to be valuable to a company so long as you get things done. I'm not activating mediocrity, I'm simply suggesting that programming isn't some exclusive of club for obsessed geniuses.
In regards to the Midwest, I know. Who would possibly want to live in one of the most beautiful parts of the US, surrounded by lush forests, the Great Lakes, and friendly people who say hi when you walk by?