Just read about this and trying to understand if it's equivalent of the saunas we have in HK?

Anyone know for sure? Are there actual barber services or is it just some poor translation?

There are two different kinds, well three, if you count hair salons. The hair salons will have the barber pole, but it might be pink, or purple, or polkadotted, whatever. You can get your hair cut there, and a good old fashioned Taiwanese hair wash. You will unlikely not find any action in a hair salon, besides the action of a decent hair cut, and that comfortable hair wash.

Number 2 is run by old ladies, and they will do men's maintenance, shaves, ear cleaning, hair washing, for the simple price of 100NT. They will be old, 50+ or more, but will do a damn good job of it. You will unlikely not find any action here unless they specifically ask you if you want a massage.

Number 3 is what you've heard about. Having visited these barbershops in the past, I've found them cheap, accessible fun with older ladies. Not a single lady inside will be under 40 years old, and most will be older, and willing to accommodate any request, for a price.

You will not find young girls at these barbershops. You will not find hot girls at these barbershops. You will find dilapidated ladies plying the trades that they know. Is it worth it? That depends on you.