In reply to summo:
> The question that is missing an answer is what is the real cost of a degree?
I think one could produce a university teaching such degrees for about half the current cost. To do that you'd teach all the year round (though students might not necessarily attend all the year round) and you'd employ staff who only teach, rather than expecting them also to be scientific researchers and academic scholars.
Why aren't people moving in this direction? Because doing would be perceived as lower status, and thus the degrees would be considered to be worth less (rightly or wrongly, probably wrongly).
When the fees went to 9k some universities tried lowering their price, but the reaction from 17-yr-olds was along the lines of, well if it's cut-price it can't be any good, so I won't go.
Remember that students are not paying this money up-front, so the incentive for them to go for lower-fee options is not there -- under the current scheme it would only start affecting what they pay back when they're in their 40s, which is way too far in the future to affect the 17-yr-old's decision. So the sensible choice is to go for the high-status option.
But, maybe at some point some large company will see a market opportunity here and try to go with the above model.