With one output cap per rail and that small output inductor, it's not surprising. Junk!
And it's a shame, because the primary side probably could do 200-250 Watts. With good parts on the secondary and proper filtering, even a 200-250 Watt PSU can be plenty for many office systems and entry-level gaming PCs.
That's the sad part. It's like they tried and *almost* could make a decent usable unit, but then stopped short of that and ended up with the current POS instead. It makes ZERO sense.

They always will.
As long as there are suckers to buy them (and believe me, there are - especially in this day and age where buying questionable cheap Chinese products from eBay and Amazon is considered a norm), we will keep seeing them.
Don't think it's a question of "if".

WOW!
I wonder what this PSU was powering for so long, though. You'd think with that crappy filtering and bad caps, the constant PC crashes/instability would have made the owner realize something is wrong with the PSU and replaced it.
Instead, it was ran until it turned into Deer kebab.

Hmmm.
If it was my unit, I would have put that 2200 uF cap on the 5VSB rail. 5VSB caps see far more stress than any other rail, since it is always On and filters a flyback design (higher ripple current output.)
The -12V rail no one cares about. Just has to be there and not too out of spec to trip UV/OV protections. Same goes for the -5V rail.
Another option you can do if you want to keep the -5V rail (for legacy purposes) is to install a 7905 voltage regulator and use the -12V rail to generate -5V with the 7905 regulator. Plus, it's easy - just mount the 7905 on the secondary heatsink and run wires from -12V, -5V, and GRND to the appropriate pins.

Those are not bad results at all. Pulling 220 Watts from the 12V rail is actually impressive given how compact this unit is. Not surprised at all with the temperatures. Now put it in a Core 2 Duo box that uses no more than 100 Watts, and this PSU will probably have a very long life and run much cooler.

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