I think the seven points you listed are right on point. Distance learning and non-ABA law schools can be the right fit for the right student. It all depends on your goals, where you want to live and practice, and whether you are a highly motivated self starter. If so, I think it can work.
In fact many personal friends of mine completed their law degrees by working directly underneath a Judge or already practicing attorney.
CA is one of the few states that allows study in a judge's chambers or with an attorney, but very few people go this route. The number of individuals sitting for the bar exam via this method is usually in the single digits, and of those only a few pass.
Most people need the experience and structure of a law school (either brick and mortar or DL) to adequately prepare for the bar.