Whether or not going to college on-line would look worse on a resume depends on who is reading the resume! On-line college has been around for a while now, and people under age 40 should be pretty comfortable with the idea of on-line schooling. Older people, generally speaking, may not be as impressed.
Speaking as an older person (55), who got their BA eons ago at a regular campus, and who has recently returned to school, here are my observations. I have taken some on-line classes (MOOCs) that make great use of video presentations and discussion groups. I have taken some "hybrid" college classes, where we were required to attend on-campus for only four classes, and the rest was on-line. These were not as interactive as the MOOC.
Based on my personal experiences, and my personal learning style, even though I know it is not right to judge others by my own experiences, I would be inclined to think less of the quality of education received on-line. Why?
Because, without discussion and interaction, I do not retain information. Nor do I come to fully understand it. Therefore, I would think the same of others. They simply memorized it for the semester, and then forgot it.
There are also the interpersonal issues, already addressed by others. Also, college is normally thought of as a place where you are exposed to diverse people and ideas, and you learn to consider other perspectives, and be accepting of other cultures. From what I have seen with on-line classes, this is lacking.
If, for whatever reason, you cannot attend a campus, then of course, an on-line degree is better than no degree. And, it does take a bit more self-discipline to complete. However, if you can attend a campus, please try to do so!
Best of luck! Kim