Susan -
You bring up a great point. There are definitely some awards which have value in the industry. Then there are others like the classic "have your poem in our anthology" ones which pretty much accept every poem and then charge all the poets to buy a copy of their book with their poem in it

. I admit I did that once when I was young. It was a learning experience.
So the key is to do research and see how the award is viewed by the industry. Is it considered a mark of honor? Or is it considered a worthless shiny sticker?
I know several people who have been awarded IPPYs for their books and they are thrilled with the process and the attention they've gotten after earning their award. It was their happy results that then encouraged me to try for it.
I think it's quite fair to have a cost associated with entering a book. After all, it takes quite a lot of time to attentively read through thousands of books. To have people do that for free seems extreme.
I'm an Amazon reviewer and I get deluged with hundreds of requests a week from people who want me to read those books. I don't just "skim" books - I give them my full attention. Imagine if I had to read every one! I would need five of me reading 24 hours a day. Even submissions to literary magazines often require a reading fee. Otherwise the deluge would be unmanageable.
So yes absolutely the summary is to do thorough research before entering competition for any award.