I think the basic argument is that the ability to handle recursion and pointers is a good litmus test for the ability to handle higher levels of abstraction. I can kind of buy into this, if you utterly can not fathom pointers how far can you really make it as a software developer. You can chug along and make a decent salary for awhile, you can be an idea guy and have lead a good startup but at some point your potential is limited. To the extent that of I were engaged in the hiring process I would be very squeamish to actually extend an offer.