The development of internet based education is a huge step forward for reaching many talented people in places that are located where the campus is inaccessible for them.
But what a campus and residential education should offer that the web basically cannot is a person to person connection - one generation training the next generation in how to think, to structure ideas, to solve problems, best done in an interactive mode and in very small groups or one-on-one. Large lectures are not optimal for this part of education, although a few really talented teachers can generate interaction in even fairly large groups. But there will be a future for the campus education if it is focused on what works best for human beings when they are interact personally. The rest can be done on the web.