The present reality is that all publishers have been reduced to vanity press, and they don't realize it yet.
In theory, publishers provide a real service, because self-publishing well is expensive (four, five digits easily). In theory, they should be offering access to people who couldn't afford what it costs to self-publish to the expected standard. In practice? The only people who can get in are people who have the connections and financial resources not to need the help. Whoops.
What we're learning about publishing (which we already knew, those of us who've been studying it) is that no one is good at selling books. Most self-publishers aren't, most traditional publishers aren't, and most PR firms are only good at taking and spending your money. We just don't have a good understanding of why individuals buy books (it changes) and there's a lot of evidence, sadly, that book sales are only loosely correlated to the quality of the writing (in the long term, quality matters more, but a book that dies in the short term won't have a long term).
Quote: "self-publishing well is expensive (four, five digits easily)"
This is basically correct, although it depends on the definition of "well". You can get a halfway decent cover for $100-$500, and you can get a halfway decent copy editor for about $500-$1000. Tools like Scrivener can handle all the ebook and paper edition formatting for you, with built-in templates, so that's another $100 or so for the tooling, but you can reuse this for future books. Publishing to Amazon and other places (like Smashwords) is free, and this includes print-on-demand paperback copies as well.
What it does take is a lot of time for learning how to use all the tools and to navigate the many options available for covers, editing, etc.
As far as marketing expenses go, there are no good ways to spend money to sell books. I think you're correct that nobody knows how to do it. If you don't win the lottery and get featured on a celebrity's book club, how is anyone supposed to ever know that you even released a book?
I'd say you can get the mechanics taken care of for the low four-digit figures. Publicity and marketing? The sky is the limit if you don't already have a following. I get a ton of requests for podcasts and interviews related to books. Which I 95% ignore. You probably want to do marketing yourself which is a major undertaking and probably won't work.
In theory, publishers provide a real service, because self-publishing well is expensive (four, five digits easily). In theory, they should be offering access to people who couldn't afford what it costs to self-publish to the expected standard. In practice? The only people who can get in are people who have the connections and financial resources not to need the help. Whoops.
What we're learning about publishing (which we already knew, those of us who've been studying it) is that no one is good at selling books. Most self-publishers aren't, most traditional publishers aren't, and most PR firms are only good at taking and spending your money. We just don't have a good understanding of why individuals buy books (it changes) and there's a lot of evidence, sadly, that book sales are only loosely correlated to the quality of the writing (in the long term, quality matters more, but a book that dies in the short term won't have a long term).