In some cases, an LCSW is actually better equipped than someone with a doctorate degree because the LCSW program is focused more specifically on counseling and therapy, whereas doctoral programs have a lot of emphasis on research.

There are many people with PhDs in psychology who have no business doing therapy, too. It's a huge field. Some people focus their coursework and research on clinical psychology, but there are also tons of people who focus on other areas such as evolutionary psych or environmental psych. I had several psychology professors in college. They all had PhDs in psychology, but only one had ever been a therapist or had any business being a therapist for that matter.

PhDs and PsyDs also tend to be more academic-minded people, while LCSWs are more social worker, "I just want to get into this because I love to help people" types of personalities. The two aren't mutually exclusive of course, but it's a general trend I've observed. PsyDs do have a greater focus on clinical psych, but these are still doctoral, dissertation requiring programs, and plus PsyDs are still relatively rare.

Forgive me if none of this made sense. I'm running a fever. I just saw mention of doctoral grads being better educated and wanted to provide my two cents. :P