Before I clicked through I thought this article was about how banks charge a fee for every electronic debit card transaction that they process. Then I realized most banks in Canada charge $0.50 at a time.
Even if you got dinged $2 per ATM withdrawal you could take money out once a week and pay less in fees. Your situation sounds like highway robbery to me.
Also, your suggestion would imply that I should only spend cash, presumably meaning that I take out huge sums of money once a week at the ATM, then spend the week having to juggle cash, change, etc. It's not worth the hassle at all. The fact that debit cards are the most common method of payment in Canada seems to imply most people agree with me.
There is no service charge or monthly fee.
You get dinged only if you do anything requiring human interaction, like going into a branch and performing a transaction through a teller.