They say they can’t handle the publisher’s fees. Can that be true? Harvard is easily the richest university in the world, though admittedly they probably subscribe to a lot more than other universities do as well. Anyway, it’s a good sign.
It’s just a matter of time before the big publishers die off (or undergo considerable reform). Academics do the refereeing for free anyway, and publishing cost are now next to nothing. The real issue is prestige. Certain established journals have lots of it, so you want to get published in them so that you’ll be noticed. But that will presumably change over time. Setting up a reputable board and getting some university support is a good start, and the reputation will come. The Philosopher’s Imprint is already more than ten years old.