I'm not sure if I agree with this approach as it has lead most countries into their current financial situation.
Wealthier and more efficient than they've ever been before?
Does it really cost that much to maintain an exchange?
Yes
I'm sure MT.Gox is making a butt load of money - why not reduce all the fees to gain mass market penetration.
Because people run businesses to make a profit.
If I wanted to create such an exchange, what's the starting point?
Learn something about economics and business?