Teachers in Australian higher education are under escalating pressure from their institutions to deliver and administer subjects within current courses with reduced staff and resources to greater numbers of students than ever before, and simultaneously develop on-line versions as a foil against staff attrition. Consequently there is an urgent perceived need for multiple delivery or remote delivery systems of computer-mediated tuition that are loosely labelled Virtual Education. Political decisions, driven mainly by purely economic criteria have unbalanced the relative value of direct personal involvement in education in favour of Virtual Education strategies. The paper recounts some of the various forms of computer-mediated education systems with which Australian universities have been experimenting for many years. These are contrasted with current strategies in use. Some of the fundamental educational barriers and ethical issues that have been encountered in the deployment of Virtual Education are raised, questioned and re-prioritised.