Couldn't agree with you more!!! You took the words out of my mouth.
Definitely, the level of most (not all) university graduates from the field of computer science/engineering is much lower than it was ten years ago. The Universities have severely watered down the curriculum so that they can accept more students etc etc. If you want graduates with a high level look at some of the blue chip companies and see from where they are hiring . Intel for example hires most of its R&D people from Israel, even a large amount of Intel's R&D staff in the states comes from Israel. Also significant amount of university graduates are ex Soviet Union who had a very good schooling in maths.
Want a better level graduate, you can't throw so much money away at revamping t he Banks of the world.We need to invest more money in education. You get what you pay for!
Invest in what matters , education.