We already have a bunch of diploma mills that will "grant you credit for life experience." One way to test out of some courses, is through CLEP exams...
some genius kid in a rice paddy in Thailand can get an MIT education via a town internet connection? sounds like a Hollywood movie. think about all the wasted genius in the world. it's a numbers game.
Good article on the thread subject of free education and the MIT program. Also some good resources at the end of the article. http://www.popsci.com/freeschool Another resource on free education is http://itunes.stanford.edu/ Great interviews of Silicon Valley entrepreneurs. All the lectures can be downloaded to an ipod using itunes for free. Good luck!