Comment Not really about whether Udacity is "good" (Score 2) 116
The main reason SJSU (and other schools) are looking at Udacity and its like, is to be able to spend less time and resources on remedial courses for incoming students (the California State Univ system is basically the entry-level university for the state). If Udacity could ensure that a majority of these students pass those courses, then SJSU can focus its efforts on "real" university material.
They seem to have fallen down on that deliverable, so SJSU really has no option but to toss them, and go back to teaching those remedial courses in person.
Really, this is quite an undesirable outcome for all sides (students, the university, and Udacity). Most of the students involved in remedial courses are those who have already failed at learning (enough) in a hands-on setting (school). Udacity's job was cut out for them - to do better than hands-on teaching, with students that are significantly harder to teach. So not too surprising in this context..