This is untrue. Good investments are often capacity constrained. In this scenario it makes sense for managers to charge high fees to investors to allow them access the best products.
B) You can win major plaudits by lowering client fees. Guess what - when investment performance inevitably goes through a bad patch the client will stay with a manager they like for a lot longer than one they don't. That gives you time to recover performance and avoid a yo-yo effect.
If your manager is telling you that you need to pay high fees because they're popular you are being ripped off.