Vinny,
I cannot speak for the airlines, but my opinion on the matter is as follows:
The major airlines in particular are looking for people that they can trust with a $250 million dollar airplane and several hundred million more in potential liabilities. They also want somebody who is well rounded and can represent their airline well. Like it or not, history has shown the airlines that those who have degrees know how to be good students, study and master a vast array of topics. These are traits that are also important as a pilot as we are constantly learning and applying new techniques.
Of course work experience is important, but one must remember that pilots with degrees also have work experience. A degree is an easy way for a major airline to cut through thousands of applications and see those who are proven learners. One must ask when looking at a candidate without a degree why they do not have one. Of course there are always financial reasons, but in this world of FAFSA subsidized and unsubsidized loans, those arguments began to fall by the wayside.
I for one hope that the degree requirement, whether explicitly stated or not, continues to remain in place for the legacy, major airlines. One of the reasons that we are able to push for the compensation that we do get (easily over $300,000 for a Captain) is that we are a professional, college educated workforce. If the industry were to embrace not having a degree requirement, this would in many ways turn us into a blue collar trade and I suspect that the compensation would fall accordingly.
While it might seem like an unnecessary barrier for those on the other end of this discussion, in reality having a degree requirement helps protect the professionalism and stature of the work force, which in turn protects compensation.
Chris