I think it's a pretty bad idea for several reasons. And don't be fooled: this place is NOT letting you do your first years of med school online and letting you do years 3 and 4 elsewhere, though that's what they'd lead you to believe. Read the Fine Print.
Some of the red flags about the dubious nature of this place are 1. slanted self-advertising, 2. grammatical/spelling errors on the site, 3. badmouthing programs with which they are in direct competition (the offshore schools -- other med schools do NOT do this if they're solid in their own right), 4. lack of protection from discrimination for students based on sexual orientation, and 5. a lack of hard and fast transfer info. Why don't they say more about the likelihood of transfer? Because they don't want to tell you it's Zero in terms of transfer to an accredited US medical school.
As a nonaccredited program not leading to any true portion of an MD degree (they haven't been granted accredidation yet, and while they're optimistic I think it behooves a prospective applicant to wait until it comes through), it's unlikely a US med school would accept a transfer from this school to anything but MS-I (the same as all other incoming first-years). Even then, grades from a post-bacc program in the US may well be preferred by an adcom. If you're a slow learner or anticipate big issues with med school classes once in, it might be a possibility -- but I think the reasons below tip the balance towards in-person work.
There is something about having a *class* that I find important in medical and graduate school. Having peers to bounce ideas off of, have fun with, stress out with, is a big deal. People to explore with (especially in Problem Based Learning and similar peer-teaching-peer courses) and debate with (in medical ethics and behavioral medicine) are imperative. Physical diagnosis courses are all the better with interactive peer and MD work (though this isn't mentioned on the site and can be a source of trouble for some med students, more than the bookwork for a certain few). And having a true support network, a web around you, is vastly different from a virtual "community." While it might be a neat idea, medicine is a field that concerns itself primarly with PEOPLE. Should't the career path, no matter how preparatory, begin with actual people as well?
