Yeah, this exactly matches my experience visiting Sydney from the US, it was great. I'm not antisocial, in fact I enjoy talking to strangers, but it feels very wrong to pay them for it.

They are still paid to be polite and friendly, just not directly from you. It can also be a selection process because the ppl who do not smile enough have been fired or not taken for the job in the first place. Having a boss in these industries “encouraging“ employees to smile more is not unheard of. It makes sense that it feels better than paying directly to produce this outcome, but in a last analysis it is not very different.

It isn’t just employees. The manager/owner of the coffee shop I buy coffee from most mornings is very friendly - I’m sure part of this is just her personality, but it is also good business sense - there are lots of other places people can buy coffee instead, and no doubt her friendliness is one of the factors that keeps many of her regular customers coming back. And this is Australia, so no tips involved-it would feel weird and embarrassing even to offer one.