There are swaths of masters programs out there that can be completed online, and are backed by legitimate, well respected institutions.
bachelor degrees, on the other hand, seem to be pretty desolate. There are a handful of well known, decent schools that offer online bachelor degrees, but majority seem to require existing credit or offer non-sense sounding degrees in favor of normal ones (i.e. I've seen schools offer degrees in Professional Studies, Organization studies or Interdisciplinary Studies vs. Computer Science or Physics). Occasionally, you can find a legitimate looking CS degree from a legitimate school, but the programs still seem be below what you would get in-person.
I imagine there has to be a number of uneducated, working people who want to achieve more, or who's career progression many be held back because they don't have that credential, but the only schools advertising to them are the for profits, who charge exorbitant amounts for what seem like below average programs.
This university launched an online MBA program early on, and built it out with a bunch of other offerings as well. We were genuinely ahead of the curve on a bunch of things, but we were also pretty separated from the rest of the university, physically and culturally. We had our own building removed from campus, and we did things a little differently. Not quite Silicon Valley agile, but comparatively. Meanwhile, the rest of the campus was adamantly against online learning, for years.
I think a big part of this is that we had an older faculty and institutional culture that was pretty set in its ways: they didn't see or recognize the value that the internet afforded their classrooms, and weren't set up to implement them. That's begun to change a bit as we got younger faculty, but there's still a tendency towards in-person learning, because of the tradition and training behind it.
I don't think this is necessarily malevolent on their part: they just haven't thought deeply about it. Plus, there's a lot of infrastructure that you'd have to build out to provide online learning: there are a lot of logistical obstacles in the way. You need to select a CMS, hire course developers, train reluctant faculty and staff, figure out how to make it accessible and ADA-compliant, design courses that make sense for online learning, then market to students who are willing to go up online to take their classes.
Those are a lot of hurtles to overcome for an institution, and it requires a lot of willpower and political wrangling within the institution in order to make sure it gets done. As a result... it just doesn't. I think it'll change with time, but it's like turning an aircraft carrier: you can't do it overnight.