Who said anything about taking time off? If the goal is to become a talented software developer, what does a hiring manager care if that was done for-pay or in school, provided the candidate got the experience and did something challenging?

I understand that there are "business" concerns (deadlines, tools, testing, and other things that aren't always taught in school) but a candidate could just as easily be deficient in those areas having worked for an employer with crap practices.

At some point companies need to stop whining and solve their own problems.