I am pretty sure we very quickly in this discussion jumped from "what the state of the industry is" to "what the state of the industry ought to be", a very common debate failure point. I am just telling you what the case is. When you say you don't believe me, you don't present an argument that demolishes my case and says why I am wrong, you are just telling me that the industry is not doing what it could be doing. But what you originally asked me is "I mean, I'm interested to know. I peer review for a few journals and I never make a dime, so where does all the money go?"

I told you exactly where the money goes. You are entitled to an opinion that it's a bad way to spend the money, and that's fine. I happen to think that it's a suboptimal way to spend the money as well. But your question of "where does all the money go?" has been answered properly.