There is really interesting stuff happening in the adult education market that will eventually trickle into K12 and higher ed. It just isn't generally covered by edutech press because of the focus on institutional money. So don't fear the reaper and all, although I agree about the quality problems now things will look differently in ten years.
And, it doesn't.
I'll be quick to change my tune when online education proves itself effective - but right now online k12 education is failing miserably all around the country despite great promises and powerful support(e.g. there are current 16 online k12 charter schools in Pennsylvania getting terrible results).
This isn't a field in which innovators are allowed to fail for a year until they find appropriate answers to their problems - that year of failing is a year of their students failing to advance. There is no stomach from teachers, administrators, or parents for such bumbling - nor should there be.
These are also not the sort of tools the article here is discussing (which instead posits that the future of education will be the replacement of traditional flesh-and-blood education with digital education platforms - which will fail).
However, working at kenHub (kenhub.com), a very small startup which aims to help medical students learn anatomy online, I personally find it very refreshing. It feels good helping the next generation of doctors and nurses. It's not really that much about money as it is about making a positive impact, and making student's lives easier.
It is an uphill struggle, against big publishers and the academic establishment, but students deserve better tools that are more agile, and fit with their existing lifestyles and habits.