Norvig is a great scientist and teacher, but you don't need this. In Residence concept is a throwback to the bad old days of exclusionary education. We have the Internet and great books (Norvig wrote one) and MOOCs the future is egalitarian.
Not to say books and MOOCs can't be excellent learning tools, but you're creating an either-or fallacy.
considering Hacker School is free, I find this claim pretty indefensible.
nothing beats learning hands on from a pro.
You could arrange something like hacker school in your home town too, if you wanted to recreate this.