Uff da! Augsburg College has gone through a number of identity crises. It started out as a strict pietist Lutheran school for purebred Norwegians. After several church mergers and splits, this became unfashionable. Then it began capitalizing on its urban location and making noises about social justice, &c. With a vague connection to the liberal ELCA, but noticed only by a largely rural constituency within that group, AC has been caught in a bit of a financial bind between impulses to political correctness and meals where all the food is off-white. Since even left-wing Lutherans love being stodgy, I think the connection to Capella is a good thing as a corrective measure. AC has never been terribly distinguished academically (tho adequate) and it has long since shuffled off its pietist coil. An AC-Capella connection might just push AC into the forefront, such as it is, of Lutheran distance education. Any identity crisis that resulted would simply be an act of homage to an old tradition.
