Surcharge Instead of Tips?

At least one New York restaurant is adopting a system where diners pay a flat rate surcharge, here 20%, instead of the traditional discretionary tip. I really don't like this idea for multiple reasons including:
1) It gives waiters no incentive to work hard,
2) The customer has no way to deduct for bad service, and
3) It could be another way that restaurants make more money if they take a portion of the percentage and then give the remainder to the employees.

Hopefully this idea will only work at the nicest of restaurants, which may mean that it will never reach Mississippi. I would hate for this to become mainstream and have to pay a fast food employee even when they screw up your order after you have waited 10 minutes for the food. I have always liked the method many other cultures, including much of Europe, use in applying gratuity: Nothing is expected but exceptional service can be rewarded with a small tip.