As I have said many times, the only people who should be teaching ESL are native speakers who hold a relevant degree, a teaching qualification such as the PGCE and a classroom based TEFL certification.

If you have a degree in, oh let's say history, something unrelated to the English language, you may as well not have one at all for all the use it provides to the teaching of English as a second language. In that respect I would say the degree holder and the person without a degree are actually equally as unqualified as the other. Simply attending university doesn't qualify you to teach a second language.

I would always take a native speaker over a candidate to whom English was not their first language, simply because thier use will not be as natural as the native speaker.

I don't have any problems with what you say. The only amendment I would make is that if schools just couldn't get qualified native born FT's to aid students with conversational English, there are many well-read degreeless first language speakers who can help out. It would seem a shame and be detrimental to the students for the schools to be obliged to hirer sub-standard degree-holding second language English teachers. Much of my Mandarin was learned from uneducated Chinese people, I would have found it very difficult to learn the language from say Turnoi who is qualified to teach Mandarin as a second language, don't you think? However, I am not saying that the degreeless English teachers I had in mind would be as totally uneducated as some of the migrant workers who successfully helped me with my Mandarin. Being degreeless doesn't mean totally uneducated in the west- most of the time.