Ridiculous. Good engineers solve engineering problems. The huge number of successful engineers out there in the world solving problems without remembering their CS course notes tells you everything you need to know about how important much of the algorithmic subject matter is.
Uh huh. I can fix my car without knowing metallurgy and fluid dynamics, but you wouldn't want me building you an engine.
Just because people are getting by doing the technical equivalent of changing sparkplugs doesn't mean that I want to hire them to do something more difficult.