Education is certainly not a "magic ticket" to anything. I've met plenty of MBAs who can't communicate with anyone who isn't an MBA, and there are also plenty out there who've been educated past the point of common sense. Try working at a university where you have professors who can't return items to the library on time because there's no one in the office who can make copies for him (since apparently they strip out the part in your head that allows you to operate a photocopy machine when you get a PhD).

I agree completely with Jed's comments that it's the individual not the degree (or lack thereof) that makes a person. I've known some outstanding PhD-owners in my time...folks who understand how things work outside the classroom and how real people make it through the day. I've also met others who have nothing but contempt for those who don't have the "right" degree. In the same vein, I've met folks who have total disdain for advanced degrees but could think rings around some advanced degree holders. Like anything else, education can make or break some people. It's no silver bullet.