Brian and company are up to something very interesting: www.testing.com/cgi-bin/blog/2003/10/02#mfa
If I were a hiring manager of software developers, this degree would definitely make a candidate more credible to me.
Unfortunately, I’m afraid I’m in the minority. With software development shifting steadily toward commodity status (whether we—developers—like it or not), this kind of study opportunity might turn fill a very small niche. With the tuition that Richard Gabriel suggests ($15,000 - $20,000/semester), I’m afraid I’d have trouble justifying the expense based on potential ROI.
I guess you have to look at the other arts as an exapmle in this case, though. People are still paying to go to music school or to learn painting or sculpture, even when the chances of making a good living in any of these fields are abysmal. So, this might in fact be the right time to introduce software as an art form into academia. You can’t really count on making much money on it, but you can definitely practice it and be expressive with it.
All this having been said, if there were an opportunity to participate in this program and I had the money (or—better—a scholarship) I would jump at the chance.