I would contend, that 2 year junior colleges typically serve well as craft based trade schools for the design profession and can produce quality graphic artists and production (print or web) people.
Undergraduate programs should be focused on design fundamentals. Many undergrads leave a four year program woefully under educated in design principles, design theory and design history.
Graduate school, is then where a designer picks a specific discipline... whether it be graphics, industrial, interiors, interactive, architecture, design management, etc.
