There's nothing I could learn from the Coursera compilers class I couldn't have learned from a $10 used textbook, and yet the Coursera class did make a huge difference. As Good Will Hunting sort of mis-stated it -- you can get access to a $150,000 education's worth of information for the cost of a library card and some late charges. Or, given Khan Academy and all the MOOC companies, with a cheap netbook and an Internet connection. None of that information may cross the book/brain barrier, of course.

This clearly isn't a completely replacement for the existing Masters program. Yet it's a huge improvement over a stack of dusty books, and possibly, in some cases, an improvement over a stack of "Certificates of Accomplishment" from non-accredited MOOCs.

I don't think this is necessarily aimed at people just exiting a BS program. It has a strong "professional" focus. If you haven't learned to interact with people fruitfully and work in teams in your professional life, you're at a disadvantage.

As I said elsewhere, I believe a program like this requires more of the student than a traditional degree. You have to bring greater discipline, the ability to learn without interaction with the instructor, and as you point out, an assortment of other skills that you have acquired on your own.

I do hope that online educators find some way to foster similarly valuable interaction between students on team projects as opposed to keeping everybody in individual solipsistic relationships with the course automaton. It's a challenging problem -- who wants to depend on somebody without any, or much, skin in the game? How would it even work with the flexible schedules this kind of thing will attract?