The biggest challenge to the model mentioned in the article is "Will employers value these degrees?" but that's already being solved. The academic system is a great set of hurdles, and most of the time clearing those hurdles is enough of a proof. But employers are already supplementing with other hurdles: programming tests, for example, either homegrown in the recruiting process, or off-the-shelf tests like Codility. The only thing that surprises me is that the shift hasn't already happened.