Electrode,
My point is, if there is ever a time that I could use a little free money to buy myself a toy, it is now. But apparently I may not be eligible. My degree is significant and I can expect to make triple what I make now when I get my first job. If I get a similar tax break after graduation and taking a new job, it will be insignificant (as other posters are indicating). I will have plenty of money to buy myself a toy whenever I want, and 800$ will mean nothing to me.
BTW, grad school is beyond this "college bubble" you speak of. I'm over 30 years old, I have a boss, and I have to work, just like you. People in my position are already paying off their undergraduate education, having kids, and paying mortgages.
So I share your perspective and don't like it when part of my paycheck goes toward the true free-loaders. I also don't like it when Paris Hilton get a bigger tax break than people like me.