You mean competency testing? What a novel idea.
Is this unusual? The paying for the course and taking the final exam, alone, as a means to earn the credit, I mean.
Here's an example of the worry: http://nextbigfuture.com/2012/11/college-credit-for-online-courses-and.html
Some people around these fora are worried about losing their jobs; why should all of us be lecturing to a classroom of 25 to 40 a few times a week when one of us could set up a course that has 20 000 people every year? Other people are greatly saddened by the cavalier pandering with college education as mere job training or hoop jumping rather than the glorious undertaking of thinking, questioning, and exploring ideas that shaped us. The value of a liberal arts education is greatly discounted when everything is reduced to certificates of competency acquired by a test, particularly for those who were not well served by the K-12 system and could benefit a lot by targeted teaching by someone dedicated.
One worry is the demise of a good many places that currently cater to warm bodies who don't know what they need, but are choosing to go somewhere with a sports team or something because of a vague idea that people should go to college instead of choosing University of Phoenix or DeVry at age 18. The hope is that we can reach some of those people and convert them eventually to the value of education. However, many people are never converted and instead merely have their idea reinforced of school as a game with a series of irrelevant hoops to jump. Spork is a vocal proponent of the wholehearted endorsement of getting more people through the training they are sure they want in a timely manner using non-classroom means rather than pretending that cattle-call classes are somehow good approximations of the classrooms that many of us have as our model of how college is more than job training or badge accumulation.