Earlier quoted context omitted.
Somewhere between step 3 and 4, I assume the publisher gets hold of the paper and acquires a license to resell it? How does that part work and why do universities/academics support it if they could just distribute it for free or via an open journal? Is it solely to get the "kudos" of being in particular publications?
Not in academia, but have watched the debates over the past decade or so... It really seems like it's the inertia of existing administrators that haven't shifted away from judging papers based on the prestige of the journals they get published by. Once the prestige factor goes away, and authors are judged primarily on the quality of their work, the publishers will lose their stranglehold. Of course, that means a lot…
Having those journals owned by publishers that engage in rent-seeking behavior is.