I figured out that some CoinStar machines will give you gift certificates without subtracting a fee. Since I order stuff from amazon.com anyway, I got that one. Worked quite well.
If you go to their website, you can search for the ones in your area that give certificates.
Yeah, I noticed that a few months ago. A coworker of mine said the local Meijer (kind of like a Walmart for anyone not in the geographic area where Meijer is mostly located) had a coinstar that would let you print out a barcode for no fee that you could use in the store. Tested it with 50 cents, no dice, got 45 cents out of it to use in the store.
I did then find one like you mention. It is free as long as you choose an amazon.com code, itunes was another option and something else I don't remember. Tried that one with about $2 in quarters and worked fine, I certainly spend $2 at amazon in 2 years (Yes they do expire after 2 years so told use it for so much you'll get caught in the situation you'll have to buy something or lose the money).
Since then by pure dumb luck I got behind a lady at my local Chase Bank (which used to be Bank One) and she brought in a jar of coins she said were her daughters and they took it into the back (so it wasn't accessable by non-customers of the bank just walking in) and gave her $28 or something. So I do have a no fee source if I even want. Ask your bank. I asked somebody about another bank in town and that one had a machine in the back as well. So sounds like quite a few banks have free coinstars, you just have to have an account at the bank and stand in line as they are operated by the bank employee rather than you.