It's also pointed out in the article that MIT & Harvard will be investing money into a new non-profit to explore the "next generation" of online learning, which is literally the opposite of "[refocusing] on in-person education", as you hypothesize.
That's fine and all but it's forcing the university model they know into an online format and it doesn't work so great for the audience that wants to take online courses imho.
The value proposition on it's Micro Masters course was that you could use it for credit at full universities. The problem is it was extremely unlikely one would get the opportunity to use it at MIT, and the rest of the partners were universities that I had never even heard of before. Not necessarily places I'd probably want to go to further my studies.
For the math & physics classes, the deadlines are 3 weeks after being assigned, whereas when you take the class in person, there's a strict 1 week deadline.
Part of the advantage of taking an online class, as opposed to self study, is the motivating factor of deadlines. I have a lot of textbooks I've started reading, then said "I'll get back to this" and never have.
Another advantage of class over just textbook is discussions with classmates and TAs. Having a schedule helps with that too, since there are others working on the same material at the same time.
Personally I have a study friend and we motivate each other. But we don't necessarily move as fast as MIT's deadlines because we are professionals with deadlines that take priority. So it's completely lost on me which is frustrating because the material is great!
[EDIT] Reference added, because today's youth are apparently not well-versed in the classics:
On the other hand, distance learning makes a huge impact on mature learners. Whether they need to "reskill" to improve their job prospects, or simply cannot attend a university in person because they juggle many adult responsibilities, innovations and improvements in distance learning is extremely important to them and is beneficial to society. I also think this group is often ignored/pushed to the side in these debates.