Germany did the same a few years back. The explanation for this change is simple, machines sort mail at fast speeds and with rollers, etc (as Mail is predominantly paper and regular sizes) they read the postal address as the letters pass upright, packages are sorted by machine that read barcodes and travel on conveyor belts (due to variations in size and weight) - these machines cost millions and are a big investment for postal companies / governments. When an envelope full of goods (poorly packaged) travellers through mail sorting machines (as apposed to parcel machines) the speed and irregular shapes causes the envelope to rip open and deposit coins, nuts or other goods into the machines. Mail companies are getting fed up of having their machines shut down, broken or having to repair them at great cost.
So, mail is for documentation. Packages are for goods. Some postal services have introduced inbetween services (like you mentioned in your post, 20% extra cost) and in Germany there is warenpost, but this is mainly for companies sending goods out, but you can send using this also. The postal services make the rules, and if you send anything that isn’t documentation even via recorded mail, they can now not pay the compensation if you ask for it when you have sent coins, for example. If you lie and say it was documentation and they have your mangled letter and coins that broke their machine, you are liable for action against you for damages to these machines.
This is the real reason for not allowing goods in ordinary mail. This includes recorded signed mail, you now have to pay more and the companies are happy to take your money as for far too long idiots have been putting small metal objects in envelopes thinking someone sorts it by hand!
One thing I have learnt in Germany is that you can still send coins in the post (ignoring the rules), as long as you are accepting that the compensation is all but irrelevant and you cannot claim it if the letter is lost, and that you package the coins between layers of cardboard in little cut outs (so that they cannot slide free, and will not cause the envelope to rip open when passing through the sorting machines at high speed), you also have to trust and take a risk that it will not be stolen (because postal workers will know that you should not have sent such items in the post at cheaper rates) and are likely to spot such letters.
From banners post I would say that Peru has recently experienced machine damage from little metal objects in their nice new sorting machines!
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