In my opinion, college degree is not neccessary to be a competent CEO. Leaders are praised for different qualities than those which can be simply taught in a school.
Jobs didn't lie about having a degree either.
The kind of lie which Yahoo CEO made, is much softer in comparison. And its obviously a mistake which he made when he was young, and then got stuck with it.
The strong reaction on HN, perhaps, is a result of too many young people out here who put a greater importance to degree. I think, it matters to them much more, being just out of college.
Would you approve of a CEO lying on public investor documentation?