I agree that online classes from GT aren't guaranteed to be better than online classes from other places. Perhaps one day we'll see an a la carte degree offered by Udacity, so you can pick the courses from the universities or instructors you prefer.
That said, branding and standardization are important. Even if the classes are no better, the perceived value of the degree might be higher than one from Podunk State Online.
Consider this question. How many employers do you know say, "Oh we hire Ga Tech grads all the time! They are great to work with" I hear that quite a lot around where I live. I think it is due to the culture that Georgia Tech has as well as the in person interaction.
It's a notoriously demanding program. I hope they can adapt their "Take a look at the people to your left and right. One of you will not make it to graduation." scare speech/boast to the online format.