This video from The Chronicle had some pretty interesting points about the need to take the lectures out of the classroom, and put them into podcasts, and then use the classroom time to engage in student Q&A and discussion. (I liked his idea of requiring students to view them before class, and give them a quiz as they walk in the room.)
What really excites me about this video is that distance learning already does what Dr. Bowen is suggesting. He says that we should filter down lectures to the core points that students listen to before 'attending class', and then devote professor's time to the interactive engagement of students in discussions and activities. At Thunderbird, professors often record their lectures to use for 2-3 terms, and then can devote their teaching time to responding to online discussions, providing feedback, and creating collaborative learning environments.