degree more important than experience these days??

As I've become a member of more,and more so called job sites,and wander their data base for a job,it seems as though regardless of the position whether lowly or otherwise a formal educational degree is more important than experience.
In fact some industies seem hell bent that the so called quality of their employees be based only on 'sheepskin'.
A persons many years of actual experience,as well as civic,or Goverment volunteerism which equate to many years of skills honed,and their personal character seem virtually unimportant.
Is it perhaps that young recruiters seek their own kind,or is it something else?

I was thinking in the opposite way. I am a fresh grad who has 2 engineering master degrees from a UC that ranks 21 and 30 in the nation for my majors. Most of the job postings i see online require 2-3yrs of exp (even for doing ridiculously easy stuffs), and the good ones require 6-10 yr. Education requirement usually 4 years degree unless you want to be a quant at new york. At first i thought i am a hotshot out of school and able to get nearly any jobs i want, but here i am sitting in front of my 17" CRT clicking the "apply now" button at monster, dice, careerbuilder, and USAjobs websites for the 228th time. I have been doing this for nearly 5 months now and I only got 2 solid email replies if i remember it right. How the heck i get my first 2-3yrs exp just to begin my career?? The job sites are "black boxes" to me as well. I was thinking maybe exp is more important and education worths a dime. But it seems like highly experienced individuals has the same problem as well on finding a good job via job sites. I guess so called "job sites" are TOO efficient on filtering the resumes or something. Unless you are 21yrs old with 10yr of exp and 5 phds, you probably be filted out. Well, i guess local competition also plays a big role at where i live as well, i live in silicon valley btw. So i am trying not to unresonably blame too much. I recently went to a career fair at my school and submited my resumes to around 20 companys attend there. I got replies within 2 days. I believe job sites aren't the best medium to find jobs. Moster doesn't work for me. Good luck guys.

Oh by the way, the book "The world is flat" rocks. We are living in this era.