Many online programs require some in-class work also. This is especially true for those classes with labs. And there will always be some classes that simply can't be taught online.
But a lot of your core classes (English, Math, History) can be easily accomplished via distance learning. It is not like the old correspondence school. Some distance learning classes have realtime video class rooms where everyone has to show up at the same time but they don't have to be in the same location. The instructor lectures and the students can ask questions in real time.
I don't think that distance learning will ever completely replace brick-and-mortar schools, but it does give working adults more options and that's always a good thing.