Regarding #3 when has a monopolistic entity ever offered low/no fees?
When it is run by the government as a regulated monopoly.
Examples? I can't think of many govt regulated monopolies which are efficient. Why would they want to?
The gov't regulates monopolies to prevent high fees and allow economies-of-scale.
Examples: Water, Power, Telecommunications, mail, health care (not the US, but note that US health care is more expensive and has worse outcomes on average than gov't systems in most other developed countries)
From wikipedia:
Nobel economist Milton Friedman, said that in the case of natural monopoly that "there is only a choice among three evils: private unregulated monopoly, private monopoly regulated by the state, and government operation." He said "the least of these evils is private unregulated monopoly where this is tolerable." He reasons that the other alternatives are "exceedingly difficult to reverse," and that the dynamics of the market should be allowed the opportunity to have an effect and are likely to do so (Capitalism and Freedom). In a Wincott Lecture, he said that if the commodity in question is "essential" (for example: water or electricity) and the "monopoly power is sizeable," then "either public regulation or ownership may be a lesser evil."
Milton Friedman was of course a conservative ass motherfucker.
and I thought of other examples since posting. 
