If waiters were payed an average hourly rate then they would have no incentive to give better service. And also the restaurant doesn't have to pay as much because its a different type of income, but even if they did have to pay them then the price of the food would just be higher...
obvious to some people, but there's always someone who will choose to eat at a restaurant with very little money, bad attitude, or just not someone who would tip a server, believing they get decent paychecks.