Ah, that's bullshit. I've been all over the world and I'm guessing by your comment I'm more travelled than you. Currently, I'm in the Philippines, where there's no tipping. Go ahead, come down here on a trip and see what happens. No tipping. And the service is abysmal because nobody has any incentive to be an excellent waiter or waitress.

What you don't understand is that tipping became a thing in order to reward good service and provide a decent income to service workers. It's not perfect, but it's there for a reason.