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I've got a Bachelor of Software Engineering and I'm doing fine (actually I'm happy as a team leader) with my current job. Nevertheless, what I think is that even if I've got an CS, instead of SE, and apply for a development job then it may take me a bit to face with the industry (such as development life cycle, A&D etc.); but I can easily get over it with the solid knowledge offered in CS courses. The fact is that currently I have to train myself on the knowledge that I never learnt in SE such as parsing, compiler etc. and sometimes look down on myself (just a few seconds ;-) ) because I cannot understand some articles discussing AI.
The understanding of "industry" strenghts (and hypes ;)) such as XML, SOA, SAX, DOM is good but I don't think it's that too difficult. Paradigms such as OO, patterns etc. are also good. But it's better if you have understood the principles. For example, if you understand the design principles then you don't even need to "memorize" the so-called design patterns ;-).
To CS students who are worried that the knowledge you have cannot get you a development job, my advice is: don't worry, you are VERY well prepared, pick a book or two in the subject that your "dream" employer wants (i.e. Java, .NET, SOA, A&D, patterns etc.) read it, experiment it and you'll be fine (of course, you have to learnt more after being employed ;) ).
When diving yourself into this fast pace ever-changing field, either you're computer scientists or software engineers, you should never stop learning the things that you NEED for your job. And I believe that a good foundation knowledge will do you more good in learning new things.
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