I do like the idea of modular degree's. Most are already fairly modular where you can pick and choose a variety of courses with a set of core required courses. The problem is they can't figure out how to do it online.
There is absolutely no reason why these Universities don't offer complete degree's online. Many offer a handful of starter/intro courses over correspondence but that's about it. They don't need to turn into MOOC's, they just need to offer quality online education - not 10 year old material. If they offer it, people will take their programs.
The only University in Canada doing complete online degrees right now is Athabasca. And some of the material is horridly out of date (COMP 268). Business opportunity? Hello?