hey dizzy,
I'm no expert on this, but from what i know that's sort of not 100% correct...
my understanding is... you have a better chance of a job, and better pay bracket with a degree and TEFL, but you can get work with just a TEFL. it all depends on WHERE you wanna work - schools or colleges or adult education thingies..
if you have a degree in English, and teaching qual and TEFL, you have great employment prospects. if you have any degree, and some teaching quals (eg dip ed, grad dip ed) and TEFL, good chance of getting work. if you have any degree and TEFL, ok chance of ok job, or if you have just a TEFL and no degree... you can get the low paid jobs with crappy hours
but it is still work !!