Distance learning and online programs can be a worthwhile option for various situations. I'm not sure if it is institutions being considered greedy. Yes, it is an alternative income source but it's also a way for institutions to provide the proper education to highly-qualified students who want an education. Now, because of the internet, these students can be anywhere and it gives the universities access to that brain power and potential in educating them. Online colleges are not a shortcut but rather a more flexible option to education.
eLearners, a great site for providing information on online degrees and classes, has a great guide on their website. Here's a list of the top 10 myths about distance learning.
http://www.elearners.com/guide/why-online-education/10-myths-about-distance-learning/
Read through and you might see how some see the benefits in distance learning.
Additionally, if you look at the developments in educational technology, there is a movement towards using more technology within the classroom, as well as an increase in online education. Look for "educational technology bloggers" and you'll find SO many opinions about the technological development in education and how it is allowing educators to develop a more personalized way of teaching. It's a real eye opener!