USPS is a 501c(3) not for profit corporation, the first one as created by President Nixon's request. A lot of people have used them for sending packages this last holiday season. Meanwhile actual letter postage traffic has decreased. USPS is not a full agency of the US government, it's quasigovernmental, under the control of Congress, there is a committee that approves postal rates.
If Priority Mail is higher that is because it has the most traffic and costs. A lot of people use Standard Mail now, for a while they were misusing Media Mail and the staffing at our post office saw a good bit of turnover in the last two-three years. Our old postmaster transferred, the assistant postmaster retired and we added this young lady who is wicked fast and good at the job, she got the Christmas lines through lickety-split and knows what she's doing. I keep telling her supervisor do not let her go, she is one of the best postal workers you've ever had.
I have few problems with my post office...they know me well and take care of my needs extremely well.
It's still one of the best values you will find, and they work with other carriers to provide intermodal service where they wouldn't have ten years ago.
People didn't pay their bills at a grocery store ten years ago either, you had offices for the phone, power and gas company. I wouldn't dare use a computer to pay a bill or bank myself but I am lucky that some will help me buy things occasionally. I even traded an entire bike frame and parts to the guy that fixed my antenna for me.