Who do you think a publishing professional is? Someone with a PhD on Quantum Electrodynamics? Editors are not librarians and are usually not paid, so what? Whoever said that librarians don't do anything?
Formatting is the problem??? Are you kidding me? That could have been a problem 15 years ago but any paper being submitted requires that they be properly formatted already. Developing a new format? Doesn't have to be perfect and the same format can be used by almost every journal. By the way that's basically what most large publishers do.
All I said is that universities already have most of the infrastructure and people necessary to do the necessary work. Just going the extra 100 m would cost them very little and would, eventually save perhaps more than 50% of library budgets.
Clearly you don't have any imagination at all and don't seem to realize the huge research support infrastructure that exists in universities and funding agencies. in many places, usually where public universities are common, funding agencies often are the ones responsible for journal subscriptions. They (and any large university really) spend millions of dollars every year on subscriptions. These same funding agencies have people that receive research grant proposals and distribute them for analysis. Does that remind you of anything???
The infrastructure and people are already there. And, by the way, pooling resources doesn't necessarily involve "expensive job of coordinating". For instance, some univerity or department within a university decides to be responsible for a journal. The only coordination necessary is for other universities to not create the same journal.