"... how many grads do not have a decent grasp of elementary algorithms and data structures, and are not comfortable with code." This is more a fault of computer science education than the student. I was taking 16 credits of upper division CS courses at [not renowned but not bad university]. Half-way through the term I had yet to do any programming. I realize that CS is about more than programming (my four classes br…
I think the primary reason so many development shops ask for CS grads, is not because they should have learned programming at university - it's because they've already been selected for intelligence by getting into a more selective hard science university program. If programming skills were more important than intelligence, these jobs could be filled with folks who have a 6-month certificate from ITT -- but hiring shops have evidently found out that they get a better product from CS departments.
I kind of feel that CS departments should really emphasize these points to prospective applicants so they can go to HackReactor instead of wasting their time in CS programs - but unfortunately they have little incentive to do so.