It's finally happened, a university is has taken advantage of free MOOC to offer students a lower cost alternative to traditional courses. Read Antioch's announcement here, and the Inside Higher Ed article.
This model is targeted to adult learners, (finish their BA for a price cheaper than community/state schools) whether this would work for high school seniors and the traditional undergrads has yet to be seen.
(Turns out I had this idea a couple weeks ago, but I've been too chicken to send my letter to the Board of Trustees at my college).
Update:
I heard on the radio this morning that the University of Chicago is waving the application cost and tuition costs for Chicago high school graduates. The program, UChicago Promise, makes it appear that the UC is really "making college more affordable" and with an average tuition cost of $61,000 / year, there is a need to at least act like they're doing that. But the figure I found socking was that, on average only 50 Chicago resident students are admitted each year!
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