Not everyone has had the opportunity to do a degree. Perhaps they had to work to support their family after school, or had to care for others. Setting the _minimum_ entry requirements at this level is fine, and will broaden the pool of applicants encouraging people who might not otherwise have this opportunity - which is the primary objective of this scheme.
As you say, doing a degree demonstrates ability and focus, which are fantastic and I have no doubt they will take that into account during the process.
I certainly don't feel that my degree has been 'de-valued', but rather is another string to my bow.