Outsourcing grading

According to NetworkWorld, "University of Missouri-Columbia sociology professor Ed Brent apparently got sick of doing his job, so he's outsourced paper-grading to a computer." Assessment of papers is time-consuming, but it makes you wonder whether the professor's job will be outsourced to a computer some day.

Question: With the availability of information growing on the Internet, will universities become extinct? What sort of entities might take their place? Or how might universities evolve, if possible, to continue to be players in the knowledge game? Will the Internet facilitate the emergence of knowledge as a commodity? Or as a resource to be pursued?