I think it us unfair to see the education system only from economic standpoint. Every one regardless whether they are poor are reach needs to have access to education. Technology bridges the gap caused by economic status by offering classes to mass audience (Stanford) as well as for people who cannot attend class because they are in some other part of world.

IMO, the competition needs to be based on quality. If institutions offer a quality education, people will recognize that and choose that instead of online system.

Over the time both class room based as well as technology based classrooms are bound to get better.