Is there an up-side to private, for-profit colleges?

Private, for-profit colleges are in vogue. These schools often are online-based, have low standards for applicants, and high drop-out rates. Is there a positive side to them? How easily could someone at one of these schools go on to a more prestigious traditional university? Or are they just a waste of money? Would regulation help?

For some background, The New York Times had an article recently about hearings concerning these schools taking place in the U.S. Senate. Popular examples of these types of schools include the University of Phoenix (off-campus) or DeVry University or Berkeley College (on-campus).