I am currently about to start my 3rd year photography degree at Blackpool & Fylde School of Art.
MTT - I heard that a million times, and although I am sure there is some degree of truth, not every single student has the right attitude and determination to actually succeed in the industry. I think about 60% of my class will not be working as photographers when they graduate. Some want to go into teaching, for some this is a hobby, others didn't know what else to do and chose photography, etc etc. This leaves about 40% to compete with, and even then there is a really wide range of subjects that each will specialize in. The truth is that the majority of the students work is quite s***, so if you are actually good at it now, there is no doubt you will be much better after 3 years of degree.
It goes down to whether you REALLY want to succeed - if you do, then you certainly can make a good living working as a photographer. It is probably a lot tougher, but if you put the effort in, it is very rewarding.
Now whether a degree is worth it...
Yes, because you learn much more than technical side of photography. My favorite part of the course is Critical Studies, in which we cover huge range of topics in Art Theory, which helps to develop our own ideas and therefore have an advantage over someone who does not go deeper than "amateur photographer magazine".
On the other hand there are costs - which are huge right now and are about to increase. When you leave you will have a good 10-15k debt depending on how much money you ask.
You could succeed without a degree, by assisting other photographers for example, which you learn an awful lot about the business.
If you are planning to go on a degree - find a good university and a credible course. There are loads now with poor equipment, staff and generally a bad reputation. There is a decent course at London College of Communication, but tough to get in.