Yeah, I think that today's associate's degree is the equivalent of a high school diploma of 30 years ago.
If employers were wise, they'd develop a standardized test, something like the SAT, that could be given to high school graduates that would score them on important subject material such as math, english, science, history, and perhaps vocational ability. I can see such a test superceding the high school diploma at some point, given that the high school diploma is no indication that the graduate has actually mastered 12th grade material.
What I noticed that was interesting were the professional certifications that are becoming more important. For example, I'm an HR manager for my company. I took and passed the exam called a PHR (professional human resource), it tested me on the body of knowledge that an HR person could reasonably expect to know to keep her boss from getting sued by doing something stupid in violation of the labor laws. I do not have a bachelor's degree in HR (actually you have to get a masters - shudders in horror).
But by passing it, I prove to prospective employers (not that I'm looking boss!) I actually know what I'm talking about. In Houston, having that certification in more important than having the degree.