On a large scale, initiatives like PLOS One (http://www.plosone.org/) are a great example of this. On a smaller scale, journals like Sociological Science (http://www.sociologicalscience.com/) & (http://www.gsb.stanford.edu/stanford-gsb-experience/news-his...) are also being successful managing the entire toolchain themselves.
While things seem dire now, I'm confident they'll get better. Scholars with status are increasingly throwing their weight behind Open Access initiatives. Tim Gowers, that droque mentioned in this thread, is evidence of this.
Disclaimer: I co-founded a startup in the space (http://www.scholasticahq.com) and Sociological Science uses our platform for managing their peer review process.
I too am confident that things will continue to improve.
Not in the dictionary, Urban Dictionary, Google just tries to translate it from French. What is a droque?