And just about all of them have higher fees if you want it published under a creative commons (open) license. Note in GP's quote: the researcher can choose CC for a fee. This option has come available in nearly all peer review journals recently due to recent US grant requirements to open published results. They still have to go through a rigorous peer review. Frankly, GP's mate doesn't know what he's talking about.
It's clear at this point I must have mis-understood his response. He's at a top tier school (CMU) so my guess is he knows what he's talking about. Apologies.
Ah. There is a movement towards no cost journals, but that's not about reputation, it's a very different fight. I'll try to dig up a link.