B) the real question is whether you want servant class of citizens who are essentially exploited?
Personally, I prefer only going out to eat on special occasions, paying well, and knowing that the people serving me makes a living.
Note: in some utopian world restaurants would automate the kitchen and reduce labor requirements, without having said automation impair quality. Maybe one day :)
It's absolutely necessary. We are being harmed economically because we don't have enough of an unskilled servant class.
Right now, women can't effectively work a job if they have a baby. You can see a situation where every household could have one servant, just to allow a woman to work - never mind all the other segments of the economy that could use low-skilled servant class. This may total to about 30-40% of the population.
Meanwhile, only about 10% of the US population doesn't graduate high school. So, where are we expected to gather the rest of our unskilled labor force?
We need to import this class of labor because America can't provide it, and we need to provide basic human services for this class of labor as well - health care, retirement, etc..
Inequality serves a useful function in any economy. When everybody is a high-skill worker, economies breaks.
If everybody is a PhD computer scientist, who raises babies while they are at work?
In Nordic Countries that would be the daycare/kindergarten (that usually accept 1+ years old kids) teachers, who have an MSc in Education or a community college or vocational school degree. This way also both parents can go to work.
We're now back to limiting the economy because we don't have enough low-skilled workers. People are now forced to work suboptimal jobs for their skillset, and our economy stagnates because we're now fixing broken windows we broke.