I'll play some devil's advocate.
Regardless what many people think about Cisco, they are a multinational company whose purpose is to make profit for shareholders. They are still the largest supplier of routing equipment in the world and they are penetrating many other markets to be the leader in voice, wireless, security, switching, and any other technology that is highly profitable. Their product implementations are proprietary while still following open standards. Let's suppose they give away their IOS to students and discount gear for training centers. What prevents bootleg copies of IOS from being distributed, placed in production, and used without any fees going to Cisco? What prevents the gear from being sold and used elsewhere? Yes, there is the threat of litigation, but the costs of litigation are huge, and it becomes untenable for Cisco. First, the "small guy" they sue won't have the resources to pay the judgements IF Cisco can win a case. Second, bad publicity for Cisco as they sue everyone who violates the licenses and enough bad publicity means another company can step in and be the "good guy". Third, dilution of brand name and value as other tech companies reverse engineer code, modify, and release competing products that undermine Cisco further. Research and development are expensive. And all countries don't follow US patent/trademark law. With the current system, just look at all the bootleg copies of IOS and unlicensed gear is already out there. Are the ethically challenged people going to suddenly become ethical? Probably not. Human nature is still human nature. The current problem will only get worse.
Yes, Cisco wants qualified people for companies to hire. Their first solution was the Cisco Learning Partners. Those partners charge high rates for the classes but they also pay high partner fees to Cisco and must meet rigid requirements to maintain partner status. Most don't get much discount for gear from Cisco so that's why most partners train with remote labs now. The Cisco Networking Academy Program was designed to get more qualified people into the technical job market because before the dot bomb, there just weren't enough Cisco geeks! That program has expanded significantly and Cisco literally gives away the store to the Academy program although the majority of schools don't realize what a great deal they have (pearls before swine?)! CLPs resisted the CNAP very aggressively because it was a threat to the bottom line AND Cisco lowered the standards. First, CNAPs don't have to maintain a certain number of CCIE, CCNP, CCNA, and Sales associates. Second, CNAP instructors didn't have to go through the same rigor to become instructors and CCSIs. (I've done both sides and I'll be the first to say the instructor exam for the CCSI was exponentionally harder than the CCAI/CCNA or CCAI/CCNP.) CLPs sell courses for $2000-3000 each for CCNA. CNAP often is available for free (high schools) or just the cost of normal community college or university tuition.
What's the fix? As CiscoG says, it's been an issue for many years. It would be nice to provide everyone unlimited access to gear, IOS, and any Cisco product for training. However, Cisco internal decisions and internal politics have not resolved this so that Cisco can protect their profits and branding while still assuring those with letters after their names meet some minimum level of qualification.
This is a great discussion. If there are good ideas (not just a bunch of gripes and complaints) this is a place for brainstorming and offering solutions. I have no doubt someone from Cisco monitors this site. I've seen Cisco adopt and implement good ideas from the field so many times, I've lost count. If you really want to, you can take this right up to John Chambers himself. His e-mail is not hard to find...and he does respond. However, don't waste his time!!!
I think some of the lower managers are keeping some of this from the higher ups - so keep posting - it will get noticed.