You didn't say what country. That could make a difference.
As for the cost of Railpasses, I think you just have to shop? Eurail (www.eurail.com) is a good starting point since they are the primary sellers, but the price is no longer fixed. RailEurope might have the best overall prices, but this site, ETBD, gives some bonuses, i.e., discounts on other stuff, that my be worth something.
As for reservations, IMO, except for night trains, and some premium trains like Thalys, you don't need reservations.
In Germany, you can get reservations from German Rail, www.bahn.de, for a lot less than you can get them from stateside sellers.
I have traveled all over Germany in the last 8-9 years, without reservations, and never needed them.