There's a fascinating piece in the TES this week highlighting a local school in Norfolk
that is offering degrees. I feel very positive about this. I am currently teaching at a local school and I'm a visiting lecturer at two London universities. I've been struck by how much universities could learn from schools about encouraging "learning" and monitoring students' progress. Moreover, I feel that the resources at school are often better than those at university: many of the teaching rooms at university don't have interactive whiteboards or projectors or anything!
Quite a few degrees could be offered by the staff at my current school -- who certainly know their stuff -- supplemented by lectures on the web. It would be much more cost-effective for students, widen the remit of the local school, and help universities concentrate more on research -- which most academics want to do the most.