My hubby is almost finished with his BA degree. Right now all his remaining classes are online as they are the upper level Comp Sci classes for his degree. So he's had some classes physically at school and some online. The online classes are more challenging, I think, because you have to be more personally responsible for taking part in the discussions and doing the work.
On the other hand, online courses save you time commuting back and forth from school, save gas, and allow you to take part in programs that otherwise would not be geographically practical. My friend Melissa got her Master's Degree from the University of Memphis and the only time she was in the city of Memphis was to take part in graduation!
Many prestigious schools are now offering online masters degree programs. Gonzaga University has five different programs, including a Master's in Communication and Leadership Studies and an program in Organizational Leadership. That sounds interesting to me. They also have two Nursing programs such as the MS in Nursing. That has to be a great career builder for those in the nursing field who want to move into nursing administration.
I think it's great that top-ranked schools are offering Masters programs online. With the economy still limping back to normal, so many people are taking advantage of the situation as best they can by getting higher education. With more and more people getting Bachelor's degrees, if you really want to stand out above the crowd, a Masters Degree makes sense.