Vijay,
I can't agree with you more. I would also like to present an idea here: I think face to face classroom training and training via virtual classes should have an 'and' relationship rather than an 'either-or' one. I believe both can co-exist, or rather both can help each other. E.g. it is a real world problem that your clientèle can't always be present in the face to face classroom, so you can 'broadcast' your class to them via a virtual class e.g. by using a projector in the classroom while there are students sitting in the classroom.
Another way virtual classes can benefit the face to face classes is by delivering "lectures" via virtual classes while meeting face to face, say once or twice a week, for more interactive discussion classes. This will help lower the cost of delivery during the virtual classes (travel time, classroom rental costs and so on) while keeping the appeal of physical classes.
My point is that there doesn't need to be a conflict in the two modes, but a marriage to get the benefits of both. This form of instruction is usually referred to as 'blended instruction' and here is a separate discussion going on around this
here.