Hi Joel, and thanks for this question. In my opinion, the traditional CS curriculum allocated too much time to the more theoretical parts of the field, and not enough to the more practical parts. If you are right, and there is a trend toward adjusting the balance, I think that's a good thing.
However, that is not to say that the theory and math are not important and useful! There is a big difference between saying "the CS curriculum should do a better job preparing students for work as software developers, and one way to do that is to reallocate some time from theory to practice" and "professional developers don't need math".
If you want to persuade you colleagues of the importance of algorithms, you might start an algorithm-of-the-month club, starting with the SIAM top 10 list
Several of the algorithms on the list come with a compelling story of how a smart algorithm transformed an intractable problem into a killer app.