In California the money goes from bottlers to a state agency and the program is essentially used to fund curbside recycling programs. The costs get passed down to consumers. While it’s indirect, it’s essentially a government service you’re taxed for that you pay either with your wallet or your labor.
Additionally, since the deposit is not exempted from sales tax, the consumer also pays more sales tax than they would otherwise.
for the rest, the only alternative I see would be for the government to get ouf of it completely and say it's up to each seller/distributor to handle their own bottles, but I guess this would require more complicated logistics?
I'm pretty sure that's what happens for glass bottles in Germany, I remember bringing back plastic crates of bottles to the brewery, and buying beer in big sturdy 50cl bottles that had obviously been refilled dozens of times already
Additionally, since the deposit is not exempted from sales tax, the consumer also pays more sales tax than they would otherwise.