Given the situation on the ground you can comment that it'd be great to stop de-valuing college degrees but I think it's pretty clear that ship has sailed. A lot of jobs do unnecessarily demand college degrees, even going so far as to accept irrelevant degrees... anytime you see "Our ideal candidate has a BS from an accredited university" you can be confident that an arbitrary and discouraging requirement is being placed on the post. Now, in reality, a lot of employers don't actually care about those "requirements" but young people often don't realize that, and the ones that do can't be certain their uncertainty won't be invalidated by the time they secure a diploma.

I don't have a specific comment on the policy under discussion, I'm not a californian and I'm not familiar with the specifics - but telling people "You'll be fine without a degree" isn't going to go over well and, honestly, is asking the recipient to accept a large risk regarding their future while you, an employed person, have already passed that hurdle. American colleges definitely have issues with over enrollment but even if wanting that state is a "bad belief", it's certainly an accurate belief.