No, I don't think less of someone without a degree, nor do I think more of someone with a degree (well, maybe a PhD).
I only have an Associate's Degree, not because I'm incapable of doing any better, just because I made some stupid decisions when I was younger. Being almost 27 and having worked in the professional world for seven or eight years, I realize now that a degree is a great thing to have, but it's no assurance of intelligence or capability. In fact, I've noticed, perhaps because bad stands out more than good does, that many people with degrees do worse work than those without.
My guess is that they feel like they don't have to try as hard since school was easy for them. We actually had one woman say she didn't need to document her work procedures because she has her Master's.
While I would like to (and intend to) eventually get a Bachelor's or higher, I don't look at people differently based on their level of "schooling".