If the waitstaff was payed more and tips were removed from the equation, the meal would cost more. It doesn't wind up costing you more to tip than is the system was changed; unless you tip very well (in which case, you might be one of those people that would tip even if the system was changed).

Isn't that good? When the prices directly include the cost of what it takes to create it?

You say this as a bad thing, as if basically every other country doesn't do this?

I just don't think that's true. Food in the UK(in restaurants) is just as cheap if not cheaper than in US and tipping is entirely optional, plus minimum wage and employee protections are a lot higher. So I don't think the low wage necessarily correlates to cheap meal prices