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Mr. Somade told me recently that "the general idea is that if I don't have to come to class, I don't want to come to class—and technology is giving students more and more reason not to come."

In an era when students can easily grab material online, including lectures by gifted speakers in every field, a learning environment that avoids courses completely—or seriously reshapes them—might produce a very effective new form of college.

much of what students rate as the most valuable part of their learning experience at college these days takes place outside the traditional classroom, citing data from the National Survey of Student Engagement, an annual study based at Indiana University at Bloomington. Four of the eight "high-impact" learning activities identified by survey participants required no classroom time at all: internships, study-abroad programs, senior thesis or other "capstone" projects, or the mundane-sounding "undergraduate research," meaning working with faculty members on original research, much as graduate students do.

But Thiel’s issues with education run even deeper. He thinks it’s fundamentally wrong for a society to pin people’s best hope for a better life on  something that is by definition exclusionary. “If Harvard were really the best education, if it makes that much of a difference, why not franchise it so more people can attend? Why not create 100 Harvard affiliates?” he says. “It’s something about the scarcity and the status. In education your value depends on other people failing. Whenever Darwinism is invoked it’s usually a justification for doing something mean. It’s a way to ignore that people are falling through the cracks, because you pretend that if they could just go to Harvard, they’d be fine. Maybe that’s not true.”

Thiel notes a handful of students told him that whether they were selected or not, they were leaving school to start a company. Many more built tight relationships with competing applicants during the brief Silicon Valley retreat– a sort of support group of like-minded restless students.

Of course, if the problem Thiel sees with the higher education bubble is elitism, why were so many of the invitees Ivy League kids? Where were the smart inner-city kids let down by economic blight and a failing education system of a city like Detroit; the kids who need to be lifted up the most?