The market for teaching Computer Science fundamentals is already rather crowded with thousands of Universities competing in that space. It's no surprise that Codeschool et al don't address that market. At their pricing level they are going for volume and volume is obviously at the lower end of the market.

Now there are to me two interesting points:

1. Is there a market for a more advanced CS education delivered outside the University system? Coursera/Udacity/EdX cover this to some extent, but even here their courses are simplified versions of the University offering.

2. Is there a way to do address the volume market in a significantly better way than Codeschool et all do? Their pedagogy is quite out-dated -- it's the old programming language as bag of syntax approach. The How to Design Programs (http://htdp.org/) approach, which I'm familiar with, is much better. I'm sure there are other initiatives.