I've done a few free courses, usually consisting of webinars, and I am currently doing an online professional course. The free courses were mostly plugs for paying courses, and pretty much a waste of time, the online course is I think money for old rope, as there is very little I'd describe as teaching.
I much prefer traditional courses because of the student interaction (at post graduate/professional level anyway) the only reason I'm studying online is my location (nothing available within four hours drive).
It's interesting that the article mentions Stanford, as I've 'taken' online courses from them (in fact I only really signed up because it was Stanford) and to be frank they weren't very good. I listened to two webinars/lectures and they were pretty run of the mill. I'll not be wasting my time with any more.
My online course on the other hand is little better than reading the text book alone and sitting the exam, and I'm only really paying for it because it's the only way I can sit the exam locally. It's the same cost as the in person course, so it must be a great money spinner for the college as twice the number of students are signed up.
I don't think either are really education. The TED lecture series might be more in that ball park.