I've heard of a couple of bad experiences, but nothing like the above!
There are a lot of great guides out there and if you ask around and do your research, most of the time you will get a decent one.
As far as tipping goes, a group of us use to go deep see fishing and we would pitch in and 10 bucks a piece if the deck hand did a good job. This was around a $800-$1200 trip with around 8 of us fishing. I don't think $10 dollars would be that much for each individual to pay the guide if he/she did a good job.