It is wishful thinking to assume that the hotels will eat the extra cost of labor if tipping were to disappear. Instead, they would institute a service charge, separate from the room bill, which does not earn any points. This service charge would be a percentage of the daily room rate, and it would be enough so the hotel can take a cut as well.
A service charge has the advantage of not being included in the amount where the hotel has to pay a traveler's commission if you book through a travel agent or another third party. It would change tipping into a mandatory fee that would be a hassle to reverse in case of poor service.