Andrew Trotter:

Technology-based forces of “disruptive innovation” are gathering around public education and will overhaul the way K-12 students learn—with potentially dramatic consequences for established public schools, according to an upcoming book that draws parallels to disruptions in other industries.
Disrupting Class: How Disruptive Innovation Will Change the Way the World Learns predicts that the growth in computer-based delivery of education will accelerate swiftly until, by 2019, half of all high school classes will be taught over the Internet.
Clayton M. Christensen, the book’s lead author and a business professor at Harvard University, is well respected in the business world for his best-sellers The Innovator’s Dilemma, published in 1997, and The Innovator’s Solution, published in 2003.
Those books analyze why leading companies in various industries—computers, electronics, retail, and others—were knocked off by upstarts that were better able to take advantage of innovations based on new technology and changing conditions.
School organizations are similarly vulnerable, Mr. Christensen contends.
“The schools as they are now structured cannot do it,” he said in an interview, referring to adapting successfully to coming computer-based innovations. “Even the best managers in the world, if they were heads of departments in schools and the administrators of schools, could not do it.”
Under Mr. Christensen’s analytical model, the tables typically turn in an industry even when the dominant companies are well aware of a disruptive innovation and try to use it to transform themselves

There’s no doubt that a revolution is underway in education. LIke other industries, it is doubtful that many of the current players will make the turn, which is likely why issues such as credit for non MMSD courses is evidently such a problem. Two related articles by Cringely provide useful background.
More:

Like the leaders in other industries, the education establishment has crammed down technology onto its existing architecture, which is dominated by the “monolithic” processes of textbook creation and adoption, teaching practices and training, and standardized assessment—which, despite some efforts at individualization, by and large treat students the same, the book says.
But new providers are stepping forward to serve students that mainline education does not serve, or serve well, the authors write. Those students, which the book describes as K-12 education’s version of “nonconsumers,” include those lacking access to Advanced Placement courses, needing alternatives to standard classroom instruction, homebound or home-schooled students, those needing to make up course credits to graduate—and even prekindergarten children.
By addressing those groups, providers such as charter schools, companies catering to home schoolers, private tutoring companies, and online-curriculum companies have developed their methods and tapped networks of students, parents, and teachers for ideas.
Those providers will gradually improve their tools to offer instruction that is more student-centered, in part by breaking courses into modules that can be recombined specifically for each student, the authors predict.
Such providers’ approaches, the authors argue, will also become more affordable, and they will start attracting more and more students from regular schools.