Is Khan Academy the future of education?

Salman Khan is a former financial analyst who quit his day job so that he could form Khan Academy -- a venture in which he makes instructional videos on mathematics topics and puts them on YouTube. And he has certainly done a prolific job of it -- to the tune of over a thousand short videos on topics ranging from basic addition to differential equations and also physics, biology, and finance. Amazingly, he does this all on his own time, in a remodeled closet in his house, for free:

I can attest to the quality of his linear algebra videos, some of which I’ve embedded on the Moodle site for my linear algebra course. They are simple without being dumbed down, and what he says about the 10-minute time span in the PBS story is exactly right -- it’s just the right length for a single topic.

What do you think about this? What role do well-produced, short, simple, free video lectures like this have in the future of education? Will they eventually replace classrooms as we know them? If not, will they eventually force major changes in the way classroom instruction is done, and if so, what kinds of changes?