Does Microsoft Certification Matter?

A while ago, I found the following discussion about certification in http://www.theserverside.net/news/thread.tss?thread_id=32963.

In my opinion, Certification does matter. Of course it doesn't replace real world experience in projects, and it doesn't assure the quality of the certified people. But it does validate some basic knowledge, and gives some new insights in some aspects that aren't often used in a day to day basis.

Another aspect is the recognition/valuation of the certification: as more people get certified and the certification spreads, the less value the certification has (even because some tricks used in the exams are widely known)

Microsoft acknowledges this situation, and launched a new generation of certifications (http://www.microsoft.com/learning/mcp/newgen/), topped by the MCA for the top Architects.

Update: A new article (http://www.infoworld.com/article/06/11/17/47OPanalysts_1.html), questions the value of certifications, as average pay for IT certifications dropped 2% between 1/Jul and 1/Oct.