Paying too much for website design?

paying too much for website design?
It always astounds me how much people pay for websites in Yuba City (Yuba-Sutter).  Between monthly fees, hidden costs, etc I see people paying $3-500 a month for their website (which in most cases is a template that their information is cut and pasted into).

Next Step Solutions regularly reviews our pricing to ensure that we are keeping in line with the market and not over charging. Part of our review includes the local news paper, and general local advertising giant.  The majority of developers in the area charge a one time fee to develop a site, then chanrge hosting fees for around $150-200 a year. The local news paper has decided that it is worth, at minimum, $200 a month to design a "website" which consists of their template and your information (ie copy and paste). 

One of the main differences between the local paper and Next Step Solutions, is that when we design a site and the client pays for it, they own it. The local newspaper however, owns all rights to "your" website. Our one time fee for the site design enables our clients to get the most from their advertising budget, by owning their advertising, not leasing. 

I cannot understand why anyone would choose to pay a monthly fee that is roughly half what it would be to own the site outright after a month or two. Why pay $200/mo for a year ($2400/yr) over $625.00 (one-time) plus $100/year (hosting fees)…? I am just dumbfounded by this decision. Cookie-cutter versus custom, where the custom is cheaper than the cookie-cutter.  If you have a reason, please share. It makes me feel bad for the companies that waste their money like this, especially in a tougher economy…