Very well put dig1, sound words.
I remember in the first few years of my career continually going over this issue in my own mind, should i have stayed on and done a MSc, had i gained an industry advantage by not doing so, i mulled t over time and again. Fortunately I was offered the opportunity by my company to do a part-time MSc, courses run at the weekends, and continue in the workplace. in my eyes at that time it was the best of both worlds.
Now 8 years on i can honestly say I am none the wiser as to the 'correct' approach but i certainly care about it a lot less! There are obviously pro's and con's to both approaches and in my opinion it is a personal choice that can only be made by the individual. In my experience the 'good' engineers have a well-rounded skill set, not too academic but with a sound technical footing.
The excellent engineers are the ones who recognise their weaknesses and work on developing them. Maybe you didnt do a MSc and feel your technical knowledge is not to the standard it should be to develop, do some short courses, get some tuition from your colleagues and peers and throw yourself into work that scares you, challenges you and forces you to develop (this is where the need for supportive managers comes in!).
Something else worth remembering is that while the market is depressed there are more engineers out there looking for work and, rightly or wrongly, getting that first job will likely be about differentiation from the candidate lining up next to you. A good manager should be looking at more than just your academic background but its not always the case. Dependant on where you are working and how the industry is doing currently it may well be that the employer has the 'luxury' or been given the direction to rule people out without an MSc?
So to summarise this wayward ramble (apologies!) only you can decide. You seem to have the right approach, having internship experience is highly attractive to employers (in the UK its quite rare actually). Good luck and keep an eye out on this website, its as good as any masters course
