Hi Sandra,
There is a trade off between on-site and online courses. The trade offs are just as you mention, one you get to see and "read" the students while working with them on-site. I really like teaching on-site because of the interaction I get to have with them.
Teaching online courses gives you the opportunity to work with students in a different way so you have to work hard to encourage discussions and interaction with each other. A lot of my satisfaction in teaching comes from the student interaction which I get from both forms of teaching, but my preference is teaching on-site since the feedback I get is instant.
Gary