Seriously - Why e-learning?

I don't think we have the artifacts, stories, evidence and convincing argument to sell Why e-learning to our students, teachers or parents. I am sold on the direction that needs to be taken and in my heart of hearts know that we should be headed in this direction. I do however get a bit stuck beyond my usual arguments justifying the WHY when the spend to mobilize our students and get them into this space is so costly. Moore's laws predictions weren't wrong stating that tools and devices would quickly become considerably cheaper. When this cost is rolled out across nearly 700 students is remain significant.
I am becoming convinced that maybe the spend, once excellent connectivity is in operation, should be on good wireless. Students are encouraged to bring mobile devices and hook into the wireless and away you go. High end machines for Indesign, movie making and other publishing are then placed in pods within classrooms to meet that need. The question comes what about the students and families who can't afford such devices. An alternative option certainly needs to be made available whether that is through lease.
If prices of the Asus eee's continue to come down then I believe we are not far from this reality.
What convincing arguments have you got around justifying the spend on e-learning tools and hardware? Did you know v4.0 is the most significant one I know of?