If as we all suspect, the whole dept is reduced to an admin person to collect the names and fees and a sys-admin to install the multiple choice problem set software - then that's less good !
Whats the point of paying to go to UC when you can learn the same stuff at home? And then the UC diploma becomes worthless because everyone knows you just watched the same stuff as the guy at home.
The only diplomas worth having will be those that still have real lecturers - like MIT and Stanford!
A similar thing happened in the UK 10years ago. All the equivalents of community colleges were renamed universities.
This was supported by all the UK's IVY league schools!
The problem is that somebody going for a job with a degree from a mid-ranking uni is faced with an employer who isn't sure whether that is a 'real' university or a former college. So to 'play it safe' they only look for IVY league degrees.
By pretending to support wider access to education - the top 5 places destroyed neatly all the competition!