Tipping is one of those Moloch coordination problems where if everyone would suddenly decide to make the world better at the same time, it would be, but if only a few people try to make the world better, it gets worse and they're assholes.
https://slatestarcodex.com/2014/07/30/meditations-on-moloch/
It's really not a binary situation where you'd ever see $2 wages with no tips though. If less people tip then the effective real minimum wage will gradually increase to compensate - either because laws are updated or because the restaurant has to compete with other better paying job opportunities. Sure some waiters may get upset when someone doesn't tip, but that is just that - them getting upset - and not the client being an asshole.