It is true that Full Sail is nationally accredited and those credits may not be transferred to traditional colleges and that each class costs around 2k but I believe artists coming out of Full Sail do have the necessary skill to get into the game industry. Check the link
on games created solely by Full Sail students.
I want to note that Full Sail isn't as bad as you say and I don't want to people who are looking to enter Full Sail to be deterred by your post. Based on my Final Project team of 7 programmers and 3 artists, here's where we each individually ended up:
1 Programmer at Intel
1 Programmer at 38 Studios
1 Programmer and one artist created Solid Champ Studios
1 Programmer at Sky Parlor Studios
2 Programmers entering Game Design Master's degree.
Only two artists and one programmer are currently unemployed and we graduated in June.
Back to the original subject, I know that the University of California: Santa Cruz has a BS Game Design degree and has been rated as one of the best universities for your money in the west coast. Unfortunately it is a programming-heavy degree.
I work with 2 artists that came from University of Central Florida. I forget what art degree they were in but they have knowledge of modeling, texturing, graphic arts, rigging, and animations. If you'd like, I can see if I can arrange for you to talk with them about the degree.
I'd listen to Tom though. I don't know of any schools that are regionally accredited and has a game art degree. You can always try your hand at an affordable art degree at a traditional college.