[endisneigh]

Though I don't entirely agree, your premises are incorrect.

1. Online is not inherently better than a CC. A CC is not entirely in person, either.

2. High achieving peer groups are not necessary. They simply need to be good enough

3. Prestige and signaling is relative - again this is adjusted to the community. A community where there are not schools could still benefit from a CC.

4. You could certainly fun at a CC, but you're right that the dorms help a lot.