Experience...(aka hands-on)....is definitely huge!
However, IMO...pairing that with some formal education results in an even better set of skills and knowledge. Versus just hands on. It builds a solid foundation to further their education and skills.
Back when Win98 was out...after working in the industry for a few years, my employer at the time sent me to CompTIA for the A+ courses and Network+ course. I already had a few years of "hands on"...and a few years of working with some high end techs. Was probably the most experienced in the class of ~30. I likely could have skipped going to the CompTIA classes and skipped reading the books..and taken the exam cold and Aced it. But I went to the classes, and read the books. I still picked up knowledge. The history of some things, how they developed, etc. I still walked out knowing a little bit more.
(some inside secrets...I did my A+ tests and aced, but the day I went to take my Net+ exam back then...I was walking into the classroom to take my test, and a client called with a big server 911 and I ran out to go to the client...never went back to take my Net+ test!)
Yes, experience can count...so long as it's good experience. Here is a question: "Would you hire someone with no certs...but worked as a tech at Geek Squad for 2 years, or would you hire someone that took A+ and Net+...and appeared to study hard, self taught forum frequenter". That second person may have the potential to run circles around the geek squad tech who only knows how to run a utilities CD and nuke 'n pave computers...leaving device managers with exclamation points!
The term "paper cert"...yeah years ago I used to poke fun at them (well, I guess I still do) Someone that hit up brain dumps...and took and passed the tests, got the certs...but still doesn't really know the material. I've run into plenty of them...and I fully enjoy discovering their weaknesses and putting a spotlight on it. To me...that's lying, or cheating, falsely representing themselves.
Taking these courses can be good, if the person is genuine, goes to the classes, and studies the materials as they should. Just like any education! You can learn from it. And sure..plenty of bad people "slip through"...not paying attention in class, not studying the material, but finding an exam copy at some brain dump and somehow passing the test to get the cert. You'll get that anywhere, in any trade. It's not the fault of CompTIA. It's just a risk you take if you have to hire people.