It has an interface from 2002. To many users this might not be a problem. To the hundreds of students I work with, this is.
It is counter intuitive to use, has poorly designed features and has terrible email, calendar and document integration with any other client. Professor complain, students complain and universities shell out millions.
With the advent of Google/Pearson - This could solve alot of these problems and reduce barriers to adoption. However it will not be revolutionary in terms of enabling education. Such software has been around for a while and better execution will not enable better education.
However if google can integrate the following two factors, we have an education game changer, not just a free substitute
- Live work collaboration with Teachers/Teaching Assistants/Students on google docs.
This will allow students to work on documents and have teachers etc check-in and help them out.
- Google Hangout : A feature that is often left out of Google apps suite. But the potential to video conference with students across the city country and the world is a real game changer (As YCombinator knows)