I live in Japan right now where there is absolutely no tipping (not even "sometimes tipping" like in Europe) and the service is better than I've experienced anywhere else, including the US. And here it's not just limited to restaurants, even in shops you get service with amazing attention to detail (oh your bag looks heavy, here's a piece of foam to pad the handle...)
Indeed. Tipping or no-tipping is really not a black and white issue. Just because they do not receive tips does not mean they don't care. For all you know they could get fired for standing around - like you would be with a regular office job.
