This works well at high-end places with a steady repeat clientele. The wait staff have the same incentive as the owners to keep standards up as places which charge a lot and do not deliver the goods, go under very quickly. And, as a practical matter, if you are a regular, you wind up tipping over the service charge and at holidays as well.
This does not work at the chains and mid-tier places. But, many will move in that direction.
In the end, people consider how much a meal costs. If it's $150 pp. by the time you leave, it doesn't matter whether and how things are divided up. But, if the service is not up to par, people vote with their feet. The place where you can't get a table for 9 months today, may be empty after a couple of rude waiters gum it up.