This paper reflects on the current position of virtual learning environments (VLEs) in universities and speculates about likely future directions for e-learning. Using accepted models of technology innovation and looking at current Web trends, it considers the extent to which e-learning is truly embedded in institutions, how Web 2.0 is being used by the upcoming generation and what this might mean for teachers, learners and higher education institutions. The paper concludes that optimism about the impact of e-learning on higher education based on the market penetration of VLEs is misplaced and suggests that Ivan Illich's concept of learning webs may be a more reliable guide to future developments. (Contains 1 table and 3 figures.)