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It rewards mechanics who are good at what they do and can finish faster,
and you don't have to pay slow mechanics more to do a job than it should
cost. The times are not set arbitrarily. They are the estimated time that a
mechanic should take to do a job. As for dealers ripping people off, I agree
somewhat, but it definitely isn't limited to dealers. My girlfriend hit a curb
recently and Grismer told her that it would be $2200 because she bent the
frame. She only bent the tie rod and I fixed it for her for a hell of a lot less.
Not all dealers are bad. When you take a car there, you just need to use
good judgement.
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