MOOC don't have to replace all colleges to be wildly successful. It is enough if they become known as the best place for self-motivated, bright people to get an education. When that happens, MOOC will be the new college. That is, completion of a course of study from a MOOC provider like Udacity will be a strong signal to employers that a student is quality.

At that point, the question employers will be asking traditional students is: why didn't you do your education online where it is faster, of better quality, and much cheaper? The fact that a person needs the hand-holding and extrinsic motivation of a traditional college is not a plus.