Is there anything I can do about shockingly poor quality course materials?
You mentioned that the college is accredited.  You might want to contact the accrediting body (it's usually regional, like SACS and NEACS) and alert them to what's going on here.  I'm very sorry to hear you're having such a poor experience with this distance learning program.  It's possible that it's vastly inferior to the school's on-site program, although given the overall bad impression I'm getting of the institution from your question, maybe not.  But yes, it's time to complain to an outside agency.

As for how to salvage your education, I don't think transferring credits is a bad idea.  Yes, your learning suffered, but I'm guessing you're not made of money and you want to be able to get through this degree without mortgaging a child to do it.  You need to transfer into a legitimate program as soon as you can, without waiting for the complaint process to resolve.  But I would still get in touch with the accrediting body.  This is the sort of thing they need to know about.