As you say, this isn't necessarily a scam if they laid out the details but it's definitely a total rip off, you do not need to pay such a massive fee just to have a paper wallet. In fact, I don't know who these Jaxx people are but they sound dodgy as just from what you've posted here, you should be able to set up a paper wallet no problem by yourself.

I recommend looking up tutorials next time and doing it that way rather than relying on shady third parties to store your Bitcoin. You should never trust a third party to keep your Bitcoin safe long term. I actually think a decent idea would be to put your Bitcoin on an offline laptop rather than a paper because then it's not as easy to lose as well and you've got something you can quickly connect up to if you need the coins eventually.

We've all got to be exceptionally careful of this kind of stuff sadly because cryptocurrencies are so new.