Islamic law regarding divorce is fair and balanced. To appreciate that, you have to understand concept of marriage, divorce, and mahr in Islam. Without going in detail and keeping short, here is what I understand:
In Islam marriage is contract between husband and wife. Both can break the contract if they desire, with or without reason. For this contract husband pays (Mahr) and wife receives (Mahr). Mahr is paid to woman by man to acknowledge that the woman has agreed to provide company and pleasure to her husband (to the best of her ability).
Mahr: Belongs to wife and she can do whatever she likes. Mahr, gifts during marriage, day to day expenses towards her food and living, all is provided to wife by husband so that she gives herself and her company to him whenever he desires, and allow him to have first right over her kids. She keeps Mahr (and any gifts) regardless of divorce or Khula. But then, there are circumstances when she should return Mahr or part of it, to get khula (in divorce, she returns nothing).
Khula: A woman can ask Khula with reasonable genuine reason or without reasonable genuine reason.
If there is no reasonable genuine reason (for instance, she just wants divorce), she buys her freedom from marriage contract (take khula), and court would grant that. The maximum she pays for her freedom from marriage contract is Mahr. Husband could let her break the marriage contract (take khula) for even less (if they mutually agree) but the maximum husband can ask is Mahr.
If there is reasonable genuine reason, for instance, due to husband’s adultery, cruelty, abuses, insanity, imprisonment (long-term), desertion, impotency, leaving Islam, etc … she can ask for khula through court and can get it. Such Khula is treated as Talaaq (normal divorce) and she do not need to return mahr or anything (court would grant her Talaaq). Anyhow, since such demand of Khula can get contested in court, in most cases compromise is made where she might need to return Mahr or part of it to obtain Khula.
As for forced Khula what you mentioned, that is illegal in Islam and one cannot blame Islam for anything illegal.
Such arrangement is fair for husband because in exchange of some monetary cost, he gets an exclusive company in life (in form of wife) and also first right over kids (even after divorce or Khula, first right over kids are always his).