I've looked into building in Portland OR. I don't think we're quite as bad as what you describe (except for the bureaucracy which is spot on), but I came to the conclusion that there'd be about $100k in fees. Just the fees to be allowed to hook up to the city sewer I think came out around $30k if I understand them correctly. (It's possible I'm missing something. I'm not an expert.)
For some people that's probably a bargain, but if you're not wealthy it's a lot of money just for /permission/ to do something.
In my AHJ, if the sewer line passes by your property YOU HAVE TO PAY DISPOSAL/SEWAGE FEES (based on water usage), even if you have your own functional and safe septic system.
For some people that's probably a bargain, but if you're not wealthy it's a lot of money just for /permission/ to do something.