I think this would be particularly useful if courses could be transferred to a university transcript. It is surprising to me that there is no university anywhere offering all undergraduate CS courses online--most have an in-person requirement. A few do offer some undergraduate courses online, NC State for example (Automata, Decidability, Grammars).
They say "one course", I assume that this will be 6.002x? I also noticed the VUE site has Udacity listed as well with the option to test for CS101.
Yes, looks like they are going to start with their pilot course. I am specially excited about this as this is a step towards separation of learning and credentialing.
Great idea, but I'm already waiting for Google AdX Brand Protection Team to knock and sue the crap out of them... =P