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I choose Lyft over Uber for a number of reasons, but I really like that they have the tipping thing right there. I like to tip people, and because I have had a very lucky life, I like to tip them well.

I actually emailed Lyft for clarification on this! They said that tipping is considered optional, and more of a reward for good service than a supplement for low pricing.

That said, for both Lyft and Uber, the drivers seem to be underpaid as a whole, and several have remarked to me that hitting $20/hr means they're doing well.

Netting or grossing $20/h?

Not sure; I think they implied gross, but probably meant net.

I would say someone netting $20/h driving a car around part-time is well-compensated. Pretty much anyone in the US can drive a car and it's neither dangerous nor particularly uncomfortable.

It's not a big deal at all. It defaults to "no tip", there's no guilt since drivers don't find out immediately and drivers don't expect tips. For drivers it's a big advantage of Lyft because a lot of people actually do like the =option= to tip.