Basically, the traditional schooling model consists of "lectures" in class, where the teacher presents you with information for an hour, and homework, where you work on problems relating to that content alone in your own time.
Khan says, that's cocked up-- we should let students consume the raw informational content on their own time, where they can pause, rewind, and go over it as many times as they need to in order to understand it without disrupting anyone else, and then do "homework" in the classroom, where there's a focused environment that encourages exploration and somebody who can help each student with their individual difficulties.
Which has always struck me as a pretty straightforward, good-common-sense approach to at least try. Why is this concept so opaque to so many people?