If you are willing to stretch your distances, the University of Alabama in Huntsville is a good engineering school(not n aMIT or Georgia Tech) that is collocated with a lot of space and missile companies. By going to UAH you can do Co-ops and internships with NASA, Army Missile and Space Command, Space X, and others. Almost every US space and missile company has a presence in Huntsville Alabama and takes students from UAH.
Your not paying just for the knowledge, your paying for a trusted authority to certify that you have that knowledge. Yes, anybody can learn from khan academy, but how can a third party (i.e. a potential employer) be sure you're telling the truth? The certification is valuable and thus it is sold.
I don't agree with you. Moving a child from a poor performing school to a high performing will definitely help the child. A full voucher system wouldn't require moving children often. Parents do the research, put their child in the school that they think is best, and the school that nobody wants to go to will get better or go away. One of the best ways to improve the performance of any group is to get rid of the lowest performers.
As others have pointed out, The 100 and 200 level lecture hall classes aren't any better than online. A 400 level 20 student class probably shouldn't be online. The 300 student Western Civ class, what do you loose by going online?
You forgot to ask, who should decide what the person gets educated in. If society is paying all the bills because of the benefit to society, doesn't that lead to society dictating what the individual learns? Just because some person is interested in the lives of middle ages prostitutes doesn't mean society should foot the bill if society needs more engineers.
They will then transfer for the last two to a university with a brand name. I respectfully disagree, I don't believe re-proving centuries ago established facts provides anything of worth. I believe that universities are going to move, despite their best efforts, to a 2+2 model. As tuition continues to climb students are going to take the first two years at community colleges and/or online classes. What labs do do is create excuses to deny transfer credits. You might have taken a 4 credit class including the lab, but here the lab is separate so you need to pay us to do it again.
College labs aren't really that useful, or at least not for me. Text says V=IR; put together a circuit, measure it, wow! the text is right. What a revelation! The only labs I've found useful are for 400 level classes and programing. You could ditch labs for the first three years without any loss of educational value.
The article didn't focus much on this point, but it was mentioned that teachers keep asking if there is a way to prevent the kids from getting so far ahead. I don't think your going to get much enthusiasm from teachers that want to restrain learning to what is "supposed" to be learned at each grade level.
You might want to get some of your marketing and other departments to read this thread. There is a great suggestion lower down to offer a mostly streaming only, DVDs available only if the content is not available for streaming option. Also, those licensing issue need to get resolved. Have you ever tried to explain to a three year old why his latest favorite move vanished over night? You need to include some type of notification both before and after it isn't available. Just having it vanish from your search results with no explanation is not good.