"Low-level"? More like scam. The "College Algebra" [1] covers what high-school curriculum covered in either sophomore or junior year (depending on whether they were in the "AP track"). Claiming that "learning to graph linear, quadratic, absolute value, and piecewise-defined functions, and solve and graph exponential and logarithmic equations" is "college math" is plain false.

So not only are the classes "low-level" (because, at least in my Math courses, we didn't get very far before high-bandwidth back-and-forth interaction with the professor becomes essential to the process), but it completely misses the point of college for most people who attend it. No online course could have replaced the socratic questioning my PolySci professor gave us (he told us he modeled the teaching after his professor who would use it to make students cry, but toned it down a bit), or the vigorous debate with a Elizabethan poetry professor about whether the themes in Shakespeare were comprable to modern soap operas, or the engagement in political and academic groups.

Sure, it might replace crappy community colleges or degrees for middle aged people seeking to improve their career, but it won't do much for the 17 year olds who are looking to form an identity and foothold in the world.

(OTOH, the undergrad CS program at Rutgers could mostly have been replaced with online or self-study. I think that's because the undergrad CS program is so pressured into training tech workers that they can't be nearly as selective as the Math dept).

1. http://www.straighterline.com/courses/descriptions/algebra/