I think the signal he's trying to send is good. The obsession with credentialing is inefficient and basically zero-sum. Entrepreneurship is more socially beneficial, so to the extent that this project raises the social status of entrepreneurs compared to academic credential-accumulators, I approve.
http://thielfoundation.org/index.php?option=com_content&view=article&id=15&Itemid=19
Thoughts?
A lot of Thiel's beliefs are in line with those of a significant portion of the LessWrong community, so I trust his judgment more than I trust that of most.