Something that no one is acknowledging here is that a "CS" program isn't a uniform thing, and that people who come out of a "CS" program have not uniformly learned what it did have to teach.
I never took the full CS program, but I hit most of the core classes while studying Cognitive Science. By far the most valuable class sequence I took was compiler design; learning HOW a compiler takes code and turns it into assembly language was a revelation to me, and I was able to "see" the relative optimization of algorithms much better after taking that course.
Will I ever need to write a compiler? Probably not, though I have written several small interpreted scripting languages/DSLs. But taking the class expanded my mind in a way that grants me insights a LOT of self-taught programmers I've worked with never seem to have.
Does everyone who takes a compiler design class gain those insights? No, certainly not. It's possible to muddle through just about any class without REALLY understanding it and pass -- some more easily than others.
The weeder classes in CS at my college were tougher than many, though, including one that actually required each student to write non-trivial programs in assembly language.
But back to your comment: It's not that all code needs to be "clever." A friend of mine once CRITICIZED a piece of code for being "too clever," and he was right. "Clever" isn't a goal. But sometimes the straightforward approach made by someone who is good, but self-taught, isn't as good as the equally straightforward approach by the self-taught AND CS-educated programmer.
>The higher level CS projects exist just to prove a point(research), or doesn't exist at all except in theory.
Real higher-level CS projects frequently involve interesting graphics research, which (also frequently) ends up working its way into commercial game development.
I don't have any clue what you mean by "doesn't exist at all except in theory," since even if you're building advanced data structures that you could otherwise pull from a library, you're building something "real" that could actually be used.