I heard there is a very nice hotel named “Small Swiss Homestay”
Well, the place must be indeed nice, but after reading through their webpage, I have to say, wow, and this in a negative way.
It seems individual travellers cannot book themselves just a room - this homestay is only available in a package tour.
Several combinations available, but the price really is a rip-off - so please beware !!!
Hopefully not many people support them …
Is the whole Alishan area pricewise skyrocketing since the chinese (tourist)invasion ?
You started a thread to complain about a place you have no first-hand knowledge of? 
Most reviewers seem to like it well enough.
The website makes it clear what they are doing:
So not a tour in the sense of big busloads, but a multi-day package for people who want to see the Alishan region with local guides. Sounds good to me.
I stayed at the Small Swiss in the summer of 2010, and it’s without a doubt one of the best places I have found: anywhere. The proprietor is knowledgeable and thoughtful and passionate about what he does: introducing (mostly international) visitors to Fenqihu and the Alishan area. Believe me: the last thing this place is doing is catering to tour buses, etc. I would go back in a flash.
Guy
I’m wondering if the OP has some affiliation to one of Small Swiss’s competitors.