I believe that a dedication to continuing learning as massively important in our field, so it is something that I always ask every candidate during an interview. Not everyone has time for open-source projects, blogging, what not, but anything is important. Following Martin Fowler in Twitter, receiving a newsletter, something, anything. Candidates that demonstrate no interest in furthering themselves is risky, but from themselves and the company.
That said, a masters degree is not necessary, it is an overkill. I rather see open-source projects.
I wholly agree with your first paragraph, and I'd elaborate a little on the second.
I see only an upside in earning a MSCS, however you do it. But while learning more principle and technique is always good, it's not strictly necessary and it's definitely not sufficient to outcompete other candidates.
Experience in relevant side-projects is a good thing. It shows initiative and passion and that you're more than just a serious student. Open source dev experience demonstrates your desire to create -- not just to design, but to actually make -- as well as your ability to work with others, especially distant others. Most pro tech work now requires not just up-to-date tools and techniques but also good communication skills, increasingly with folks who work away from you. Demonstration of such skills is unusual and desirable, especially in those just out of school.
Instead of editing what I wrote, I will comment on it.
In hindsight, looking back at my MSCS, I think the strongest point of a Masters is not the elevated agree, but the opportunity to focus on a specific field. If you have an interest in AI, go to GT and work underneath a professor with lots of experience. Do not get a Masters just for the sake of getting a Masters.
GT has tons of research dollars. I was paid the entire way there, even as a non-PhD student. At first a teaching assistant, and then a research assistant. You cannot get that kind of experience from an online school.
> That said, a masters degree is not necessary, it is an overkill. I rather see open-source projects.
There are companies where side projects or off-hours work on open source projects is complicated. Employment contracts that say the employer owns all of your work, on the clock or off, aren't uncommon. It might be easier for some people to get a masters degree, especially when employers are willing to pay for it.
That said, a masters degree is not necessary, it is an overkill. I rather see open-source projects.