I am a big believer in tipping as an effective way of evaluating a server’s performance. Servers who do not perform cannot make a living and find a different line of work. Eliminating tipping means the only person a server needs to please is their supervisor, which is less efficient than the customers directly controlling the server’s income.
Which directly benefits the restaurant owner/mgr. The clear proof of this are return customers asking for seat at a servers tables as well as the server refering to "my regular customers", establishing a direct relationship with customers. And return customers pay the nut.
Of course this doesn't apply to fast food joints.