GCS / Azure can survive a total AZ failure too, think of 3 x Replicas as RAID-1, whereas Erasure Coding is more like RAID-6. Only it's actually more resilient:
Let's say you have 10 data blocks, and you have 4 parity blocks. You can now lose 4 servers containing a block and still be able to repair the data, whereas in 3 x Replica you can only lose 2, and have to store everything 300% of size, instead of only 140%.
And yes, it is unreasonable how much they charge for both storage and inter-az bandwidth.