Originally Posted by deadly7
Computer Engineering - engineering of the physical hardware and related software components of a computer
Computer Science - the theoretical approach required for approaching computer-based problems. Most schools require lots of theory but little application. For example, learning about the solvability of certain problems, there's not much to be gained beyond knowing "well this kind of problem has no great solution". Or even learning an algorithm does not mean you know how to actually apply it. The common misconception is Computer Science == sitting in a lab coding all day.
Software Engineering - A purely hands-on approach to solving problems with programming
and how to get better. This entails things like official proposal writing, obviously requires you to have the requisite programming skills to solve the work, etc etc.
That's a good summary, and to your point, the job that you want coming out of school with a computer science degree is typically a software engineering position. Computer science as you ahev defined it is basically an academic pursuit similar to high level mathematics.
There are private research institutes (Parc, MS Research, IBM Research, etc) where you can be a computer scientist, but most of the jobs are for application.
I have lots of theories about the current employment situation, most of which can be summed up as, information technology progressed in places that people weren't even looking. When the recession hit, a lot of people got laid off and their jobs were automated. Now there is not reason to hire those positions back. Meanwhile, every company is becoming a technology company and if you can't make a computer do your bidding, then your value add is greatly reduced.
IT is a force multiplier in the white-collar workplace and you need to know how to shoot. This is why these guys are going to be the next hottest thing: http://devbootcamp.com/
I'm pimping them a lot because I dropped by their office today. They are basically taking everyone's need of retraining and monetizing it in the best way.