I absolutely agree, but sometimes there are other factors that come into play. For instance, at another school where I worked, retention was the basis for everything from salary to maintaining employment. It made for an environment that focused more on keeping students in class rather than ensuring that they had learned the required material.
Most online schools have retention as a part of their employment records, but it is not the one factor that can make or break an instructor. And as an adjunct, fighting the system usually only leads to one's termination.
Tara