Everything will, instead, be online. Education will be free. It will be worldwide. It will be accessible. It will be meritocratic. Gone will be professors. Gone will be PhD degrees. Gone will be Harvard. Carey now knows The Secret of Education.
Rather than cannibalizing the applicant pool, MOOCs are likely to end up just one of many alternatives for students looking to shorten their time in school or (more likely) place out of entry level courses.
The fact is, Silicon Valley has yet to come to terms with education. It's a massive, global market, but a notoriously complex one that is tricky to negotiate. A lot of what goes on in education is almost certainly not scalable.