Seun's response deserves a reply post.
Yes college still serves a purpose - for some fields and possibly outside of the US.
There are fields like medicine where years of training should be a requirement.
In places like Ethiopia, college degree - regardless of what it is in - is a big deal. Most places worth working for have it as a requirement. There is a direct correlation between pay and years in school.
College is the first and only option for people that have a difficult background - even here in the US. Most privileged people already have a job waiting for them. So to break through and get a chance, the rest of us need college. For immigrants for instance, education is the way to get a start.
My argument in my previous post is that the current college setup and cost for many is a rip-off. Just like medicine, education in the US has become more about making money than giving service. Getting a degree or PHD from a prestigious university is becoming more a status symbol than actually getting skills that can be applied.
I recommend that colleges change.
Provide better return for investment.
One possible solution - Make it free!!