I'm taking the GTOMSCS from Georgia Tech, for less than $7,000. I asked Berkeley if they have any plans to change their steep price tag ($50-60K), and they said no, because I'll be allowed to go on campus and get all benefits of an on campus student. I told them I don't plan to do so, and that I think I'm paying a high premium for a "feature" that I don't use.
They didn't reply.
in G.Tech you CAN'T go on campus, although the degree is the same. I didn't hear of a decrease in the on campus program enrollment there.
I think that if GT will show profit and that it didn't hurt their on campus program (and that the program rigor is not affected) then other universities will have to follow.