One note in particular stuck out for me:
A quirky company called Rosetta Stone has largely put college foreign language instruction out of business. For approximately $200/semester one can learn almost any language one wants—not quite free, but much cheaper and (apparently) more effective than the college classroom. Rosetta Stone is a good example of winner-take-all; it has cornered the market not because of some government license, nor because only their employees know languages, but because they are better and cheaper.
Why not do this with calculus, chemistry, psychology and all the rest? This will eventually happen. In each of those disciplines a product (or, hopefully, two or three competing products) will emerge that is manifestly better than anything any individual college can produce in-house.