I think people do know how to code after getting a CS major, but not like a pro.
Personally, I've only had my CS degree for one year, but I only know how to do what I do because I taught myself win32, opengl, etc. slowly over time by doing a ton of independent projects for fun. Like anything else, learning comes with time, patience, and being interested helps
Don't get me wrong - I learned a ton of stuff in school... but my undergrad (University of Rochester) taught a lot of Unix stuff, whereas the kailleraclient is written entirely in win32 (which I have not taken a single class in).
Long story short: I learned a lot of excellent programming concepts and fundamentals in college, but to be able to code these kinds of applications (like the kailleraclient) took a lot of self-teaching.