They're creating their own separate harmful emissions and have separate trucks emitting exhaust, consuming fuels and damaging roads/infrastructure. Then chemicals and pollutants to treat the plastics and papers, 80-90% (depending on which study you read) of which isn't usable. Higher costs (as you noted) to create a lesser product and tons more.

It's not just recycle for reuse vs new... almost everything related to recycling, with the exception of glass, metal, and batteries, is a burden on the environment and our economy, and is total nonsense.

But we have to save the trees!!
There are over 3X the amount of trees today than we had in the 30s. Trees are a renewable resource just like potatoes or veggies. No one's crying about us consuming too many potatoes (well... my wife might be).

Anyway, recycling doesn't work except to provide shitty jobs and smoke and mirrors to the public that we're good people. I certainly recycle but only because of the convenience it affords me and if my recycling bin is full, it goes right into the trash without a second thought.

Also get off my lawn!