In my experience, there is enough fluff and non-programming, abstract theory classes in a CS major that people who cannot program their way out of a wet paper bag can complete the degree, and even get high marks. These people can get jobs, and coast along for years at sub-mediocre levels of production, in most cases.
I'm going to be a bit more charitable and say that those people find non-programming jobs in the field.
One person I interviewed stood out in my mind for having completed a Master's in CS, was able to classify the problem I posed her as belonging to a certain type and told me how it should be approached. She still couldn't even begin to write the (simple) code to solve it, however.
This person was obviously smart, and also quite obviously had no programming skill.
