I've never worked in the valley, and I usually don't have much to do with the web or mobile. I don't have a degree, and the subject has literally never once come up in an interview. In 17 years, I've never encountered anyone who cares. Also, the vast majority of job descriptions read something like "Degree in CS OR equivalent experience" and therefore explicitly do not require degrees.
It will vary from company to company and culture to culture... I have a friend at a large aerospace company who was basically told he had 3 years to get his degree or he was out... He's now a mid-level project manager and does 2-3 the workload of his closest peers, but H.R. policy was that he shouldn't have been allowed into his current position without it.
