I think it's somewhat insidious in that it forces a confrontation between workers and customers and the benefit goes to the owners. it also gives the impression that the product (lets say food) is 20% less than what is printed. yes I u/d tipping is optional, but it is more or less expected (at least in nyc) and you can be ostracized if you don't participate.
This should not fall to the patrons. This is the problem of the business model. Remove tipping as an option, price the meals, and pay the employees a wage.
who are you advocating for here? if you're actually concerned for the servers, you might consider asking some of them for their opinion on tipping. most servers that I've talked to (including myself) actually like the system.
I'm not the OP, but I'd advocate changing the minimum wage law to be the same for waiting staff as it is for every other job. You can still allow tipping. Here in the UK a 10% tip is customary if you were happy with the service, and I know plenty of people who do very well out of tips.
Some make good money and like it. Some would rather have more consistent pay and less emotional labor. Some think it's good for them but unfair to the back of the house. Some have seen it facilitate wage theft and hate it.
over a single pay period, servers are guaranteed minimum hourly wage regardless of tips. if minimum wage is less than a living wage, that's a separate issue that applies just as well to gas station cashiers.