The key part of Mark Guzdial's conversation with Udacity founder Sebastian Thrun is this: "He's not out to replace the lower end. He's trying to create a new, low-cost option at the upper end of the higher-education spectrum. He wants to create an inexpensive, high-quality 'Elite' (to use Rich DeMillo's term): An E-Ivy, or an ubiquitously-accessible Stanford." My take: the learning system is simply the set-up for the testing system, and he's betting he can create a testing system with Ivy-league credentials.
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