There is no denying that what Mr. Khan is doing is fantastic. But it would be wrong to de-emphasis the value that a community of learners adds to your education, like a university or a college. I am not a conservative (I not exactly old enough to be a conservative), but I see the point in the university model. First of all, I am not for the high fees and the bureaucracy, nor am I for the heavy course work with no explorations and grades for minimal work. I cannot loath them enough. But why do you want to take away the community that a place like the university would generate?
You do not want to be a lone wolf just watching a few tutorial videos and call it an education. We all know we learn more from each other than from anyone of the faculty members. (Here I am talking about students who really want to learn, not the one's who just want the elite degree. Thought the number is less, but it may increase if we work on making the system reward excellence rather than exam papers).
Also you may be able establish a lab for UG studies of software engineering or electronics (upto a certain extent), but subjects like mechanical engineering and Instrumentation & Control require quite expensive labs. Not feasible for an individual to buy.
Why not pool many student's money and buy those. We would need a common place to meet, so lets buy some buildings. Hey we would definitely need recreation and food, so lets make a recreational centre and a canteen. All this can be managed by students, but if not lets hire some MBA's to manage all this. WALA you have a ditto university but without bureaucracy.