As someone who is on the editorial board for 3 journals, reviews about 3-4 papers a week, and is not a faculty member (I'm a contract researcher) with over 50 peer reviewed publications to his name, let me tell you about some costs you're missing in your assumptions.
1) You're correct that the peer review process is provided free by scientists like myself, and it is our duty to provide this review. However, I'll spend 1-3 hours on a paper reviewing for content. What I'm not doing is copyediting. You're assuming that the papers submitted are in good shape when they arrive, and I would say out of the hundreds of papers I've reviewed over the years, only rarely have I found one polished and ready to go. Almost all of them have formatting errors, typos, and grammatical errors. The worst ones sometimes are those where the author is not a native English speaker. They could have absolutely fantastic results, but the spelling and grammar is so bad you can't exactly figure out if they've discovered something novel or if their results are totally bogus. You need to pay for someone (or multiple someones) to clean up, copyedit, and format each paper.
2) Electronic review system. I'm not seeing how your model pays for this. Someone has to pay to host, maintain, and power those servers - they don't set up themselves. That is a cost that can be divided per paper submitted to the journal - but then onto #3.
3) Many of the open-access journals make the author pay to submit the article upon acceptance to the journal, thus paying for items #1 and #2, but with budgets being cut you're asking the author to sacrifice even more of his small budget (which in my case pays some of my salary). So who pays in the end is always going to be a sticking point.
4) Not all peer review is fast. You're assuming all scientists are ideal and get right on the paper as soon as they get it. I've had papers that came back in a week, and others that took 9 months (reviewer #3 sat on it and the editor couldn't get them to follow up after they had accepted the invitation to review). So you need to pay for some infrastructure to either pull the paper back from the offending reviewer, or pay for automatic reminders and follow-up.

I personally like the existing system as is - it works well for me and I can usually rest assured that the content which does finally get published is polished and ready to use. But I'll agree that the journal costs are not sustainable. What I'd rather see is that after 5-10 years, any federally funded research automatically becomes public domain. That way the journal publishers make their funds to sustain the quality of the journals (and I'm talking print quality here only) and the system continues to run smoothly, plus the public domain gets to build off of the results that we as taxpayers paid for.

I actually am a composites engineer - we work with the materials made out of fiberglass and epoxy all the time, and more exotic materials as well like aerospace grade carbon fiber and high temperature resins. These materials can be safely cut if you have the right tools, which I'll go through and then suggest what you may be able to do as a "do-it-yourself" option.
1) For any fiber reinforced polymer, to cut through it you will have to have a high speed saw (which you have) but it will kick up two types of particles - tiny pieces of broken epoxy (micron sized dust) and tiny fiberglass strands, which many others have listed here as problematic for your health. A HEPA grade half-face respirator (one that fully seals around the mouth and nose) will address the inhalation, and goggles will address anything else kicked up by the cutting, but, these are secondary protection to the main protection, which is a wet saw. You have to cut these things while they are covered with a steady thin flow of water. The water effectively washes away the particles as you cut through them. Or at least it captures about 90% of the particles as we found during a NIOSH study done in our labs. This is why we wear the filters and gloves and goggles to catch the rest. If you don't have a wet saw you may be able to engineer one, crudely, as I'll describe below.
2) Other secondary protective gear you should have would include something to cover your arms and chest depending upon how much dust you kick up. Just because you haven't inhaled it doesn't mean you haven't landed the particles on your skin somewhere. You can buy disposable Tyvek fabric "suits" which will protect you from any dust the wet saw misses. They're a bit hot to work in for a long time, but they do the job and after you sweat/stink them up - out they go in the trash.
3) With circuit boards, you also have the fun of dealing with the components, some of which cut through fine, and others you should never cut through (capacitors for example). I would recommend removing all components from your cut line before you start cutting through it. It may mess up the ascetics of what you're making, but you'll be much better off if they are removed and you put them back later via super glue or some other adhesive.
4) So let's address the make-shift wet saw. Obviously you can't immerse your saw in water (unless you want to electrocute yourself) so either you have to isolate the power supply to the motor (fully insulated and waterproof), or engineer a small hose to direct water onto the cut line while you very slowly cut into the board. You want the water flow to be enough to keep the surface fully wet while cutting, but not a river. If you're creating a water-fountain when you cut, the flow is too much. You also want a platform to lay the board upon so you can make your straight cuts - you're feeding the water-covered cut line into the blade, not running the blade into the board. So the platform should be metal or something else water-proof, but if metal, make sure it's something that doesn't rust or you can remove to clean and dry.

I will admit that the make-shift wet saw can work, but, you'd probably be better off investing in a proper wet saw for your work from a ease of use and safety perspective. You can probably even get one at a machine shop or factory auction when a company goes out of business.

Best of luck.

Oh yes - this show is loaded with good doctors. We shouldn't forget Dr. Henry Killinger, "Dr." Rusty Venture, or Dr. Myron Orpheus.