> The problem with MOOCs is that they have a pretty low retention rate.
Actually, I think that's one of the strengths of MOOCs (or, at least, a symptom of its strengths.)
> The benefit of having a physical class is that you can turn to the professor or TAs for help if you're having trouble. It's also more difficult to completely fall behind because there are milestones in place (tests, assignments, projects, etc.).
The MOOCs I've been in EdX and Coursera all have had both milestones of the type described, and TAs to go to for help.
What they don't have is a large up-front cost to enter, so there's no reason for people not to try out classes when they aren't completely certain are the right fit -- and little reason, even if the fit is good, not to drop out of one iteration and come back and take the course again if other life events that do have a cost for not dealing with now erupt.
So, yeah, a higher rate of people starting MOOCs and not completing them compared to traditional courses is to be expected -- and that's a good thing.