Because they're otherwise un-hireable, despite common assumptions. MIT grads, especially 6+8 yr grads, are having a hard time finding a life outside of academia. 8 yr grads suffer from an overexposure and ego stroking within the walls of their universities that ruins them for life. I suppose it's because they almost always lack the experience of the real world outside of their own protected walls, and secondly they are often quite difficult to work with. You think you've flown with a Captain with an ego problem? Wait till you work with someone walking around with an MIT badge in his wallet. Yes, I have a PhD from a major university, but no-one knows it. When it becomes beneficial for me to wave the paper around, I'll get it out.

Contrary to the press, MIT's marketing, or popular belief, they're often hired in at very low positions at large firms, where they fail miserably. At HP, Seimens, IBM and others, no one wants to work with them, and they rarely hold senior positions. Every now and then you'll find one, but not too often. They usually cause trouble in the work force, do not understand business in it's reality, have little to no interpersonal skills, and carry a very large chip on their shoulder. In short, they are type cast amongst their peers as soon as they start waving their PhD around, and not even seniors want to associate with them. Their only salvation is the Government where incompetence reigns supreme, or back to the classroom where they enjoy their god-like status.

Roll all of that up and imagine the difficulty in the cockpit when you have to fight with such a know-it-all all the way from ATL-SFO. Nah, these guys have unfortunately remained in the academic world for a reason - they are terrified of the real world. Now a decade ago this was not nearly the problem we see today. But with the environment as it is, I would venture to say less than 5% remain in the workforce and do well, the remainder moving back to their familiar academic surroundings, or perhaps the government where they can misbehave as they've become accustomed.

RE: The OP issue of 1000 vs 1500 hrs, firstly you'll find that those hours come pretty quick when you get to that point. 6 months maybe. Secondly, if I was a CP or the hiring/screener at any particular airline, I certainly would not be strong-armed by some university that worked the current corrupt Washington system, with the sold purpose to have me "lawfully" force-place an entire graduating class ahead of a more experience pilot roster. I think you'll find those kids who have spent a fortune on the Kansas fast track after being told they are guaranteed this and that, are actually flying freight in a 182 somewhere until they get up to every one else's standards of 1500+.

JMHO