To be fair, I totally agree. And I do my best to explicitly not look for any particular degree - that doesn't mean HR isn't going to declare in all the job postings "bachelor of science in computing or related field required".
I think the core of the problem is people who never learn perspective or why you would do something outside of good grades - no one grades you at work.
I wouldn't say your GPA is a red flag without investigating the rest. If you have a GPA -and- other good qualities, then the GPA ceases to be a red flag.
Also, if the core problem is students setting out to get a degree, then the system is fundamentally broken - after all, the unique differentiator of universities is the ability to award degrees.
FWIW, I think college is significantly overrated, but treating a high GPA as a red flag and yet seeking candidates with a degree seems contradictory to me.
For some context, my own experience was that I had offers for employment before university, but I decided a diploma would be valuable, so I spent 3 years in school to finish a 4 year degree with a "high GPA." That's a red flag?