Having just done a maths degree I too question the validity of the three years that I spent, working hard for my degree. Universities sometimes don't do enough, and I'll talk about that below. (especially coming from my degree at my uni)
I was always about the understanding... I hated rote learning and I never wanted to succumb to its grasp. Yet I *know* that there are plenty of first class degree holders that will admit to rote learning the modules they hated.
Rather than cramming everyone into university, what should happen is that there should be less unis and the government should invest more money into these fewer institutions. In turn, these fewer institutions give fewer places for students (only those who truly want to study rather than party; this can be deduced from more rigorous interviews), and finally results should be both based upon a physical exam AND the impression that the lecturer got from the student over the course of the three years.
This would have completely changed people's attitudes towards their education. The passionate ones would be fine; those there for money or for laughs would be kicked up the backside and forced to work to a good standard rather than rote learning and adding to the devaluation of degrees.
I'm also pretty baffled by how many people get firsts. If anything, those who work incredibly hard and get into the top 1% of the institution should be rewarded with some kind of award to put on their CV. This is done far too little and the people who go to university and work for the love of their subject should be rewarded as such, thus giving them more reward for more work. It's hardly game breaking if each institution hands out an achievement award for the top 3-4 candidates in each department.
As for the overall issue, even if that can't be fixed, doing the award system above will stop people whining because you can't say much if the people who worked hard, didn't rote learn and truly understood the material were rewarded for it and distinguished from the other countless two-a-penny first/2:1 degree holders.