Agreed. Also the claims that the fees are for typesetting and the like are highly suspect, given how specific so many journals' formatting requirements are. As poster above says, if they were spending any significant amount of money on typesetting and the like, you wouldn't have strange nags about margins and capitalization and other formatting nonsense, so it is clear they basically do almost nothing on this front.

If they did any serious typesetting, they'd be fine with a simple Markdown or e.g. RMarkdown file, BibTeX and/or other standard format bibliography file, and figures meeting certain specifications, but instead, you often get demands for Word files that meet specific text size and margin requirements, or to use LaTeX templates. There are exceptions to this, of course.