#2 makes me sad. I went to a for profit school widely regarded as a diploma mill, and received an excellent education that I feel truly prepared me more for the real world than many of the CS graduates I've worked with in the ten years since graduation.
Remarkably small class sizes meant a ton of one on one time with teachers whom had worked in the industry for years before going into teaching. All the students were there to LEARN, many of them non-traditional students.
They never could escape the negative stigma and went out of business last year. I imagine I'm doomed to the same stigma.