I live in Las Vegas, a city where tipping is part of the culture. A system based on tipping is superior when administered properly. When they say paying staff properly (higher), that of course just means the tip is built into the price of items. That means more management staff is needed to supervise workers. It also means in service jobs employees do not earn more for good service. You tip based on service level and get superior service.
Now, they do not know you will stiff the workers so you are not refused service. However, if you visit that establishment again, they do remember who stiffs them and you can get issues such as a waiter ignoring you completely. It also reflects on people of similar background such as the wives of Chinese business people are known to tip badly and demand a lot, so they get ignored and frustrated.
When part of a system, you tip. Otherwise, the tipping will be built into the price and it is forced upon you.