Interesting to note how the MOOC atmosphere is developing. Recently I have been hearing how remedial education may be a hotbed for online courses that aren’t necessarily the size of MOOCdom.
UPDATE: Further, trying to design the course on the fly at the last minute is a recipe for disaster. If you have an environment like that, the issue may not lay with Udacity as much as with poor pre-planning. Perhaps the place for MOOCs is as a supplement to a otherwise walled community type of course. Perhaps MOOCs best fill the need of a resource or tool when responding with a community of practice.