Like many people who responded I'm more interested in technique classes than project classes. There are many advantages to doing technique classes on the web. For example with craftsy classes you can repeat sections of the class as many times as you need. You can skip sections of the class that you are already familiar with. You can do it at a convenient time. Classes are cheaper. You usually have extraordinary teachers who are really experts in their field.
The disadvantages are that your questions don't get answered immediately and their is no social interaction.
I believe for a LQS class to be successful you need to be very good at what the online class is not good at. IF the classes provide good social interaction and the teachers are knowledgeable that is helpful.
I haven't found any classes at the LQS that I'm interested in but I would like to try the social sewing classes. The classes where you bring your own project and can get help from others would be good. Maybe its hard to offer classes for intermediate quilters that don't have too much repeat in them.
Sorry not to helpful but these posts did make me think.