An alternative to the current system which would be very disruptive and allow for a lot of experimentation and alternatives would be to have state level or national level certification exams that would need to be passed to obtain a degree.

The exams could then also show percentiles, so even if you were self taught you could be ranked against Ivy League students.

Cons to this approach would be the same issues that exist with standardized testing today. Emphasis on only learning to the test, high stress make or break testing (although this already exists with the SATs and other exams). I'm sure there are also a number of other cons.