My BS as well as my MA are both through distance learning. Most of my undergrad work was classroom-based, but I finished up at Regents College (now called Excelsior), which is based in Albany NY. It's fully accredited, highly rated, and serves many military members who travel a lot.
I currently teach upper- and lower-division courses at Park University, which also works closely with the military and offers online degree programs. Because I'm now a faculty member, I'm seeing it from the 'other side,' and I can tell you there's a lot of training and front-end work for online courses to be developed and to prepare faculty members to teach online.
Unlike years ago, online education is recognized as a viable and credible way of learning and earning a degree.