Earlier quoted context omitted.
Universities are not arguing this. If you read the article, you’ll see that the universities in question have already, voluntarily, given partial refunds to students prior to these lawsuits. The lawsuits are demanding even more refunds while the students still want to collect the remote education. If the Universities were faced with this decision up front, it would have been better for them to furlough all employees…
Georgia tech offers a fantastic online CS masters program for $6.6k (1/6th of the cost of on campus degree). I highly doubt that these universities have offered even close to a 5/6th refund to their students.
It's not fantastic in that the courses vary wildly in quality, are mostly taught by teaching assistants, can require 20 or more hours of (busy-ish depending on course) work per week, and just like undergrad, you will struggle and be forced to teach yourself the material instead of being taught a significant portion of the time. Usually the textbook is much more informative than the lecture; your life is better if you own many textbooks on the subject since often the lecture information density and coherence is poor.
What I'm saying is, the course lectures are pretty mediocre for ~40% of offered courses. OMSCS is valuable because it's cheap and prestigious, not because the instruction is high-quality. It's great for self-starters, auto-didacts, and hard-workers with background in the subjects (admittedly, most students from decent engineering schools will qualify).