In a restaurant, would you rather pay less for your food and decide how much to tip your server, or pay more for your food and not be obligated to tip? In much of Europe there is absolutely no obligation to tip. I got a haircut in Croatia and the woman practically kissed me when I gave her the equivalent of a $4 tip (I wanted to thank her for cutting my hair even though we did not share a common language.)
For me, this is a pretty difficult question. On the one hand, it is really nice to know that the price on the menu will be the full price you pay at the end of the meal. On the other hand, I do believe in rewarding particularly good service with a better tip, and particularly poor service with a smaller tip. Add to the situation that I am a waitress, and the whole thing gets even more complicated.
The one thing I know for sure, though, is that someone should standardize the whole thing. It is really hard, when visiting multiple destinations in Europe, to know when to tip and when not to- and thus it is very difficult not to look like a doofus at one point or another.