I'm part of this program and the material is no "cake walk", and they use several tools to adequately "compensate" for anything potentially lacking due to the inherent nature of distance learning (with a possible exception for benchwork which most students already have in spades given that most of them are currently working in the industry---and which others already have from undergraduate or additional studies).
As to certain employers not viewing this degree as having the prestige of a "live" program---screw 'em. Any employer in today's world that automatically, totally discounts an on-line degree is an inflexible dinosaur (with a higher likelihood of failing) that I likely wouldn't care to make a career with anyway. While they are certainly free to question the sufficiency of a particular individual's preparedness (as they would any job candidate), and while the school has certainly adapted to find new ways to raise some revenue in this more interconnected world; this particular degree is sound, and anyone completing it should be viewed as being self-disciplined enough to complete a major project without much prodding/nursing.
I do not believe the school is overselling the usefulness of this degree. No one has promised me I'll be able to secure a golden ticket at the end of my studies. However, they likely do not want to advertise in big letters that the U.S. medicinal chemistry market is likely oversaturated in the short term with very skilled people.I don't know if I agree with this statement; I found it somewhat unconvincing. But, as I thought about it, it brought to my mind one of the benefits of bricks-and-mortar graduate school: group meeting.
I don't really miss group meeting very much. I spent a lot of time being very bored by it. But to be sitting in a room for (at least!) 2 hours a week, 45+ times a year with my professor and his students, discussing our research results, research results in the literature and (occasionally) the direction of the industry was really, really important and formative. You learn how to analyze other people's results, how to think critically about the literature and to sit and listen to your professor's opinions and the opinions (informed or not) of your colleagues. I think I learned all the important principles of organic reaction mechanisms (again and again and again) by sitting in a windowless room lit by fluorescent lights with uncomfortable chairs, trying to figure out why you get this isomer as opposed to that isomer. Where are you going to learn how to answer questions under fire? Where are you going to learn how to defend your research results? I do not believe that distance learning can simulate this experience.
As I said, at some point in the future, I'm sure that distance-based graduate school will be equivalent to a traditional program and these technological hurdles will somehow be overcome. But for the moment, I do not think that you will learn as much in a distance program as opposed to a traditional master's program.
*Granted, there is opportunity cost to be calculated. 2 years in school is 2 years out of the job market.