They actually understand that college is an overrated learning experience and just serves to drive up labor costs. Many of them have dropped their college degree requirements.

I think many parents who continue to value the on-site college experience do so simply because they have been trained over the years that college=better earning potential. Most of them have no basis for understanding the paradigm shift that is going on relative to employment requirements and the evolving ROI related to a college degree.

As a contrary, but certainly related, perspective though, I always say "We'll all be Communists once we build a robot that can design and build robots." Which is a short way of saying, the vast majority of people will not require a college education or even a job, as technology progresses. Personally, I don't want to live in that world, and I'm glad I will likely pass away before I see it. That eventual outcome is even less promising for on-site Universities.