It would be easy to dismiss AC Grayling's new liberal arts-style college as a vanity project, pure and simple. After all this man's last project was to write his own version of the Bible.
But just because it is easy doesn't mean that it is wrong. If you want a liberal education in London with strong pastoral care in a small community you could go to Heythrop for a lot less money, or Regents in the private sector.
Which is not to say that I disagree with WonkHE. The scale of this project is so small that it might well be able to find some sustainable demand, at least in the medium term. There is currently an undersupply of elite higher education so if they successfully build the brand as an elite one, then they may very well be able to find a couple of hundred applicants a year. Either way, on this scale I can't see it making much difference to anyone.
Edited to add a link to Crooked Timber, where you will find a much better post than this one on the same issue.