How often do you hear the statement "How did he/she pass the PE?". The PE exam, is a MINIMUM competency test. It does not evaluate how well you know the subject matter, versus knowing just enough to be able to read Code and take a test. Requiring a structural engineer to take a test on water and environmental subjects proves this point. Codes were created and adopted by various gov/agencies to protect the public from those minimum competency test takers that pass the test. Any average joe can READ code.
Education should not be replaceable. As experience is extremely important in order to get a handle what works in the "real world" in terms of cost and constructability, it is the theory learned in school that allows you to understand the code but most importantly its LIMITATIONS (i.e. why are there rules and exceptions?).
Worrying about over conservative designs being done by under experienced but educated engineer?; It is not anywhere near as bad as an overly confident uneducated PE, under designing structures so close to their approximated demands that it requires a program to accurately analyze their true capacity. (FEA/Structural programs alone should not be used by those that don't understand how they run in the first place, let alone accept their results and not understand the sensitivity or uncertainty of the inputs). This is a recipe for a disaster. It is not worth the risk. The following motto comes to mind:
STRUCTURAL ENGINEERING: The Art of Using Materials (that have properties that can only be estimated); To build real structures (that can only be approximately analyzed); and To Withstand Forces (that cannot be accurately known).
I hope for everyone's safety that those who practice engineering without a degree, have taken the time to truly understand all the theory behind the code they are following, or the programs they are using, and not just use the excuse that they had no time, opportunity, and/or money to know better. Or that school programs are being "dumbed down" to attract people. Being a recent graduate (current decade) from 6 years of college (BS and MS), all of my professors emphasized the importance of understanding the theory and the assumptions that structural programs or building codes make, and demonstrated everyday examples of how easy it is to get yourself into trouble.
Now with some years of practical experience, I can definitely add that it is also “what you learn after you know it all that counts" too. No engineers should be excluded from a continued education.
btw…..a masters is in no way a Phd. Although I agree that Phd intelligence on minor engineering design in the consulting world is counterproductive, it is definitely a necessity in field of research and development.