I work in higher education and it is already being done. Lynda for example a prof will sometimes not be able to answer a specific question about a side branch of the class topic and point to Lynda to fill the gaps.
I think that for higher education this is likely going to be true to a point. Internet can only teach ideas. Practical skill is not going to come from internet. You can learn the theory of welding for example but given the tools needed you may not be able to actually weld at all.
The issues at the lower levels is simple how many kids hate math or history or fill in your blank. I loved history biology and hated math and french. An elementary school teacher is needed to not only impart information but keep the unwilling on track. You may not like math but you still need to use it. A student (like myself at that age) may not like a subject and may never excel at it but still need it. Self directed learning assumes the drive and discipline to learn.
Where I teach we have a large number of foreign students they need to pass a use of english exam both written and a phone interview. How is it that we currently have students who cannot process simple spoken instructions and require a translator to follow? Easy they did not write the exam or take the phone interview. The internet also cannot sort out one student from another. This is also the issue with massive class sizes in university too, but often this is only the lower levels and at some point the classes shrink and this is no longer possible. Where I work out largest class is 150 and the smallest is 2. You can't hide in a class of under 40 if you don't know the subject the prof will notice.
I see the point but there are huge practical gaps in the structure of the argument. I think that perhaps a internet learning system can work but at the end of the day a class still needs a 'moderator' at its heart. The size of a class to be effective cannot be larger than the level of personal direct recognition. Teachers cannot know everything they cannot address every students needs 100% of the time but also cannot be replaced by software.
He did mention the under current of school schools take feral children and shape them to adults. That is the base function of schools, elementary schools train protocols (raise your hand with a question) jr high adds to this and has more cause and effect. High school teaches discipline (self) and responsibility. College/university polishes adults.
Sadly even this is breaking down now, the first year of university is now often spent on attempting to teach self control. It is quite a shock when a first year walks into my office and proclaims they didn't bother to do the assignment and I look at them and tell them I don't care if they do it or not. If I have finished marking all the others and they ones outstanding that didn't contact me (I don't chase after anyone) they fail. They can very easily contact me and if something comes up but if they don't not my problem.