I think they made a pretty smart choice starting with a CS degree. The field is notoriously full of extremely talented autodidacts, whether because the material is more amenable to that approach or because those who learn it are more capable of doing so.
In any case, the attitude towards educational background in the field of CS/software engineering is already quite liberal and accepting. So there's less of a prejudice against this program than there would be for an online MS in many other fields. Now they just have to make it work.
Despite other comments about not staking their reputation on this degree -- and I agree that the "Online" part of the title seems like a hedge -- Georgia Tech takes its reputation extremely seriously. Smart people are staking their own personal reputations and careers on this program. This is something new and it may fail, but not because there is any intent to deliver a lesser education.