Well, I'd rather hire a person with experience and no MCSE than a paper MCSE with no experience.
I think Microsoft is tossing out the NT4 cert to help push sales of Win2K. The extra money they make from getting people to take more tests is a drop in the bucket compared to what Microsoft will make on extra sales of Win2K. Once the MCSEs get certified in Win2K, they will be out there wanting the companies to upgrade.
Not to mention one of the great benefits of the whole MCSE program from Microsoft's perspective is it provides the ability for Microsoft to brainwash people into thinking "the Microsoft way". Everyone knows there are questions on the tests that have a "best for the real world" answer and the Microsoft answer - and only the Microsoft answer is correct.