What this tells me, is that there is clearly a demand that is not being met by 'traditional' colleges/universities. These schools offer people a chance at a diploma that they can put on their resume.
There's clearly a demand not being met by 'traditional' medicine. Homeopaths offer people a chance to treat themselves. So, should 'traditional' medical schools take note and start training people to be homeopaths?
(That's probably a bit over-the-top sarcastic, but it was meant to illustrate how abysmally clueless you are about the issue.)
These schools give people, who maybe got off to a bad start, a chance to go to classes in the evenings, it is a path for those students who were not necessarily 'good' at school and would score poorly on an ACT or SAT test.
Some of these schools do that, but by no means all of them do. Others give the students false hope that by earning a specific vocational degree in 'x', the student will get a good paying job in 'y' - except the 'education' they provide (degree 'x') is actually something of a Potemkin village. It looks good from the outside, good enough that they can't be accused outright of malfeasance... but it's actually essentially valueless. (And from the schools point of view, it's not their fault the students can find jobs.)
It's the second type of school the Feds are going after. Nor it is the first time, they went after their advertising methods (essentially advertising a product they couldn't deliver) a few years back.
If you don't have that piece of paper on your resume, you are not even going to get an interview regardless of how knowledgeable you are in the field (unless you have a contact inside the company already).
Employers are, in general, not stupid. When they see the "piece of paper" is from one of "those" schools (the second type mentioned above), you aren't going to get an interview either.
I think the traditional colleges need to take notice and start offering programs that mimic what these for-profit schools offer. Flexible schedules for adult students, shorter paths to a certificate or diploma, etc.
Community colleges have been doing just that for decades. You're way late to the party.