Academics are periodically called upon to pass judgment on other academics. It's an unsavory part of our job, but given that there are fewer jobs, less grant funding, etc. than the number of strong applications, it's a necessary evil.
To the best we can, we try to evaluate their research record directly. But it is maddeningly difficult to evaluate work even slightly out of your field, and so journals serve as a signaling mechanism.
And here I agree again with what you say: we are paying millions to Springer, Elsevier, etc. for the use of their names. ("Ooh, this person published in Inventiones Mathematicae!") Which we we made great.
As much as I despise this system, if you believe that universities can change this, at the level of policy, I am very curious to hear what you propose.