Those are simply egregious charges. No one thinks they are reasonable, including hotel management. However, if they get away with charging it 90% of the time, then they come out winners, don't they?
It's really no different than some hotels in the Northeast US now charging for parking when they have absolutely no business doing so. Two examples that are maddening are the Sheraton Needham (MA) and the nearby Westin Waltham (MA). These hotels operated for well more than a decade with attached parking garages for all guests and never considered charging to park there. Now, each guest gets a delightful $8 a night fee assessed them for the nearby parking. That, to me, is simply outlandish and really upsetting. The $8 is nothing, of course, but the fact that they have the gall to charge for it in a semi-residential neighborhood is ludicrous.
Billing a guest a whopping $125 for what the OP describes as 8 small boxes is just plain nuts. We can ALL agree on that. I think I would've asked for the GM himself and asked for a complete reversal of such a charge based on common sense grounds. My suspicion is that a significant percentage of GM's would quietly reverse the charges.
Flycotoseetheyanks is correct. I, too, suspect that this environment of creeping charges will be with us in the days ahead. If you want your sheets changed daily, that'll be an incremental $7 charge. If you'd like a fresh towel every day, that's another $2.