I agree. For the right student in the right circumstances the CBE schools are an excellent option. A huge percentage of the small/solo firm and government attorneys here in CA are CBE grads. For someone making a career change, or who already has a job lined up, they can be a great alternative to the ABA scheme. My wife is an attorney at a large government law office in LA, and I'd say at least half of the attorneys are CBE grads. I've met plenty of CBE grads, and found them to be smart and competent. (Incidentally, I've met a few top T1 grads who complete assclowns.)
I get the impression that these schools work best for people who are highly motivated self starters, and who are adept at getting out there and marketing themselves. I've been told that the CBE schools (generally) don't offer much in the way of career services. I'm not sure tha the average CBE student has the same internship opportunities as their ABA counterparts, for example. However, most ABA grads need to be motivated self starters, too, if they're going to get a job in this economy.
Further, the CBE schools are not fly-by-night operations that can be run out of a P.O. box. They are brick and mortar schools that offer a solid, basic legal education. The California bar does not simply confer accreditation on anybody who shows up. To paraphrase the NY Times, the CBE schools offer the legal equivalent of a Honda: economical, efficient, reliable. The ABA, however, requires that you only build Cadillacs. This may come as a surprise to those who live outside of CA, but so many of the attorneys in CA are CBE grads, and so many have successful careers, that some of the "stigma" of attending a non-ABA school has been removed. Of course a degree from UCLA is always going to open more doors than a degree from the local CBE law school, but I'm not necessarily convinced that a degree from say, Western State or Whittier, is more useful than a CBE degree. If the student wishes to leave CA, that's another story.
If you are a young student, I would say always go to an ABA school. It will give you greater immediate mobility. But for others, the CBE schools are a great opportunity. I have noticed, however, that the cost of the CBE schools has increased quite a bit. The average total cost now seems to be about 50-60k. Although that's half the price of an ABA school, a student with s decent LSAT score could probably obtain enough in scholarships to a T4 ABA school to make the cost competitive.