Aaron, I disagree in several instances...
1)While I make sure to keep waters full 100% of the time, I only fill soda on request (and once they've asked once I'll keep doing it) because there are a lot of people like you who don't necessarily want 48oz of coke and many parents don't want me wiring up their kids before bedtime. But it's rare that anyone gets upset that I haven't filled it, and if they do realizing that I'm happily filling it RIGHT then usually calms them down.
2)The free refills aren't where restaurants lose money, it's in overhead. I think restaurants offer free refills as a way to make up for a slightly higher markup.
If you'd rather all restaurants could go the way of Avalon, and offer bottle cokes (12oz at $2 a pop with no free refills).
3)The problem with the chain restaurants doing that is it creates a standard in the consumers mind that independent restaurants can't live up to cost wise. Most places like Applebees who give a free desert give soft serve with a little chocolate sauce and sprinkles or some equivalent which costs a minimal amount material wise while independent restaurants spend much more time and money on their desert. Our deserts are $6-8 for a reason. The chef has taken the time to create something special and imagine the cost of giving out numerous free deserts every night...it'd be cost suicide. And now, thanks to Applebees many customers after saying it's so and so's birthday, waiting and smiling, put me in a very awkward position where either I assume they want something for free, or dissapoint them because they DO want something for free. It makes me feel snobby and it makes them look cheap and many of them also assume that we're chintzy because "geez all these other places do it"...It's just a bad deal all around.
also-
Of course, for every customer like me there's probably three or four who suck down Coca-Cola as if the company is going back to the "new Coke" recipe tomorrow.
...you have no idea!