Arxiv is not peer reviewed. If you think we should get rid of that, make that argument; but keeping the review model and getting rid of access fees would increase costs elsewhere.
Regarding profit: sure, you could set up a nonprofit to do the same job. You'll end up reducing costs by 20-40%, even assuming you don't have higher costs because of lower scale/lack of experience/etc.
For other essentials like food, I've seen stories about nonprofits that get large groups together and buy in bulk. Co-ops are basically the same idea. Using a non profit to reduce costs has been done.
Regarding profit: sure, you could set up a nonprofit to do the same job. You'll end up reducing costs by 20-40%, even assuming you don't have higher costs because of lower scale/lack of experience/etc.
For other essentials like food, I've seen stories about nonprofits that get large groups together and buy in bulk. Co-ops are basically the same idea. Using a non profit to reduce costs has been done.