You're right there. It's a real racket they're running.
That's the 'thing'.
Publishers earn money by producing novels that get sold. The authors get a percentage of this. Fair enough, they're running a business and not an outlet for artists.
Oh ... hang on. Quick, take a different turn.
The Old Road.
An author finishes work on their book. They can either approach the publishers directly or pay a fee/percentage to an agent.
In fairness, an agent has all the 'contacts' and experience and that is what you pay for. If your work is bad - or, with charity - needs work, your agent will advise you. They're not editors - they are letting you know what sells. It's in the agents interests to tell you how to 'sell' your book!
If you don't 'sell' then they get nothing, so an agent will drop you. It costs them nothing and you take nothing.
Approaching a publisher while circumventing an agent is a dream!
"It happened to SIR Terry Pratchett so it can happen to me!"
Yeah.
You do realise how much work TP put in to write his stuff? That he had a day job, that he didn't really like, but he needed to pay the bills? Even he admitted his success was all chance.
The New Road.
An author finishes work on their book. They may or may NOT have had it passed by an editor. And a proofreader. Or someone who doesn't say "HELL, YEAH! This is fantastic - it'll sell!"
You needn't pay to have it published - in paper print - but just go online, have it 'recorded', then promote it.
It might be good. It might be lousy. But the filter process it went through - agent or no agent - HELPED authors!
Selling books online is hard. Publishing books online is easy. It's time to be realistic about publication conferring some form of legitimacy. After all ...
Just because it's online, doesn't mean it's ... believable?