I think it is great that Harvard and Stanford open their course material on the internet but can someone explain to me why they would do it? I mean, what is in it for them - a bit of PR and friendly headlines aside? Their name and status alone is enough to stay "in business".
Top professors at top universities have a lot of clout, and despite the many issues there are with the current system of higher ed, I do believe that a lot of this work is sincerely driven by the ideals of good professors. Look at the interviews with Sebastian Thrun regarding the AI course, he clearly believes in finding a models of maximizing the quality to cost ratio for education.
Culturally I think places like Stanford, Harvard and MIT know well that many times you don't find your business model until you experiment, and if you want to be in charge of the future you have to be the one doing the experimenting. I think the angle that sells this to admins is that if you're a leading university you want to be pushing these boundaries, and if you want to be a head of the curve you need to be.