"If institutions offer a quality education, people will recognize that and choose that instead of online system."
Absolutely on the dot.
As an aside, there are intangibles associated with actually going to a University, e.g. interacting with people in person (serendipitous learning), that online classes cannot undermine.
I see online classes as a excellent supplement to what's being taught in class and in cases where in-class learning is not an option for an individual (monetary, time or location based constraints). It is such an exciting time to be around; we can witness exactly how social networking and online education can interplay vis-a-vis in-person, in-class learning.