Admittedly I work outside academia (though my wife is a tenured professor) and thus have some unavoidable naïveté about how the culture and community work, but I’m always confused about why universities aren’t just sponsoring the organizational costs of coordinating the review process, and establishing community-driven open journals to replace the rent-seeking corporate journals. What am I missing about the benefits…
The entrenchment is due to perceived (and cultivated) prestige, less so about tangible benefits. Prestigious journals have good brand value, they spend money cultivating it and they extract earnings from it.
Researchers and administrators trade on journal brand value for career advancements. They benefit from a highly prestige-stratified journal catalog as a tool for differentiating themselves from their peers, it's much easier to justify a promotion based on 'X publications to prestigious journal A, B, C' than 'bunch of people in the community think this is a great result', especially to a non-expert.