Is there a bit of loss in this model vs. the current one? Sure. But what compared to what was taken, what was gained is much, much greater.
Because instead what we got was RSS, Slashdot HN and Reddit, comments on newsites, partisan blogs and just blogs in general, aggregators and communities and yes, even some fairly newspapery sites that still have radically different layout and affordances.
But that's just one particular example from living memory. I remember seeing people hypothesize about playing board games like chess online, which is chess-by-mail, BOAC. Sure, we do that, but we also play Team Fortress 2. There's still a lot of people trying to make sure that television is just like cable television, BOAC, instead of embracing what computers can do, as Netflix is doing, let alone the many people who are actually using computers on a small scale to make movies that would blow the socks off of even a fairly well equipped home town TV studio fifteen years ago.
Just about the only domain I can think of that has immediately perceived and embraced computers as fundamentally transformative and revolutionary is the arts. The instant anything like a synthesizer appeared in the world, musicians were using them to make new sounds in every way they could think of. Computer special effects didn't go through a phase in which they were just used to replicate existing effects more cheaply until the mid-200xs, which seems to be over. The very first video game was immediately something that could not be replicated in the real world.
I am struck by the number of reports on moocs that talk of online friendships - and I suspect that the open replacement for facebook will come out / be integrated into of coursera or udacity or the like.
I've mainly thought of free online education as impacting the lives of the thousands of students who yearn to learn, but do not have the opportunity to do so.
It's great to see that it's a two way street in terms of impact. Hopefully feedback from students who aren't traditional college students will help humanity broaden its understanding of the world and help us identify biases our academic disciplines may have. And we can all come out better for it.