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I mean, this is what is happening with the dynamic tipping system and none of these things appear to be happening.

There's a critical difference between dynamic pricing and tipping: one is optional, the other is not. That makes a huge difference in the psychology.

Ok, you can replace dynamic pricing with dynamic tipping in my original comment if that makes it more comprehensible for you.

Because it is thinly veiled as a customer-choice.

Again, not saying the outcome is different, but socially it won't be accepted, as it removes that veil.