I'd agree with that 100%. Brain Dumps really sully the certification standard. To wax really geeky, it's like using cheats in a video game. You just don't get the same satisfaction of finishing the game in the end.
It is certainly their manager's fault. But CERTs are like keys to a gate, they can get you into a job you might not otherwise have gotten interviewed for - whether you have the experience to do that job is another issue.
I would suggest that certs + experience is the best combination. To say that most people see IT certs as BS is simply not true. It is true, however, that people don't look at a cert and blindly assume you know your stuff.
I certainly agree that certifications don't mean that you are good, and experience is more important than certifications. BUT, certifications + experience is better than just experience. Certifications can help to indicate a completeness in someone's knowledge -- that the person's experience encompasses what a specific certification covers. I also think that certifications can indicate a level of commitment. Someone who has several certifications has at least demonstrated that he is willing to put in the effort required to get that certification. I agree that experience > certifications, but don't write off certifications. I've got CISSP and A+ certification right now. This weekend, I'm taking SANS GSEC, and next month I'll be taking the Comptia Security+. I work in security consulting (for a big 4), and certifications are a huge plus.