I sometimes have similar reservations about companies that list arbitrary experience requirements too, especially when they're clearly just going off some industry norm. That's just me tho. YMMV.
But I try to give them the benefit of the doubt on the initial job application. They have to put something down, and as spez pointed out on the Reddit thread, it's an easy way of disqualifying people who like to complain instead of do something about it. It's an unfortunate filter that probably turns off a few well-qualified candidates, but nobody's perfect.
What college did you go to?
Also, I use the degree requirement as a filtering mechanism on the jobs themselves. I figure I don't want to work for anyone who cares more about titles and appearances than ability, so if that's a disqualification, I don't want to work there anyway.
There are plenty of startups around - more than there are skilled developers, actually. And if you are a skilled developer, you can always start your own.
Also: The Ivy League typically doesn't have great CS programs... ;-)
ps, see my other comment -- as much as a top CS school is nice, this was essentially a typo on our part.
(1) "Ivy League" means absolutely nothing in the context of graduate programs, as the rankings are discipline-specific and many Ivy League grad programs are mediocre. For example, Harvard's computer science program is strong, but not remotely in the same league as CMU or UIUC.
(2) In any case, "Ivy League" is not a synonym for "elite college"; well-regarded universities such as Stanford, MIT, and Michigan are (surprisingly?) not Ivy League.
(3) Related to (2), emphasizing "Ivy League" pisses off nearly everyone who went to a good college. Those who went to non-Ivy elites (like me) consider themselves excluded when they see these ads. Those who went to Ivy League colleges generally dislike the snooty, stuffy connotations of "Ivy League" and don't like the sorts of people who emphasize "Ivy".