In my mind, this proposal is an important step in the right direction for online education. While other universities were looking to form coalitions to protect elite education, MIT specifically chose a path of openness. It goes against the grain of current material values. It is innovative. We are providing our core materials that are the infrastructure that undergirds an MIT education.
Real education requires interaction, the interaction that is part of American teaching.
He's probably right about this point for now and into the near future that this interactive learning environment can only take place at a physical university. But I think there could be an opportunity for an even bolder initiative than this one to try to create a digital learning community.