I believe the key problem is that (most) students who enroll to a CS program expect to become engineers, but the CS curriculum is supposed to form scientists, not engineers. The key distinction is that in a SW Eng program the emphasis is on the process to build software (stuff like CMM, XP, quality processes, architecture methods, etc...).

Sure CS grads can make fantastic engineers, but my point here is that the difference between CS and SE is not well understood in the industry.