the contributions that traditionally were sent in by Jdrones, were perhaps offset slightly by the costs of producing/shipping the literatrash, plus maintaining an array of satellite locations to support this, plus the logistical and housekeeping support to the large amount of people needed to print/ship their garbage. - Redvip
All of the costs involved in producing and shipping millions of items of literature were factored into the price and the end result was a massive income. It was likely a small profit per item but the volume was huge and the labour was relatively inexpensive - "stack 'em high and sell 'em cheap". In addition they had donations from the rank and file.
When they stopped charging for the literature they naively asked the r&f to donate the cost of the magazines in addition to their regular donations. Of course that failed miserably.
Now they have lost the vast profits from printing millions of books and magazines and have to rely on donations. Thus all the real estate shenanigans and cost cutting.
Your argument is like saying a factory that made its money by making widgets at a profit, is better off not making widgets because they no longer have to pay wages or shipping costs.