That's really ignorant for them to do. Actually, I'd say their doing their students a disservice. Employers want people who are both smart and know some technologies from the get-go. C is pretty good to know (better than Java, IMHO), but they should at least try to integrate some Java technologies into the CS programs, at least in the upper years. Focusing entirely on theoretical is great if you assume everyone will go to grad school, but most don't.