The "fix" is easy: If you tie, you split the prize money. Jeopardy obviously doesn't believe it has to worry about that, so I doubt prize money is much of a consideration.
Most people come down on the "don't tie" side. I agree with Don, but only in some respects and not as passionately. I don't believe you're being a dick to play for the win, except possibly in that narrow window of the fifth game retiree, which isn't even relevant anymore. Still, as our scaly friend pointed out below, if I'd dominated my opponent and a tie was still possible, I'd be tempted to leave open that possibility. There are never guarantees, but in a Jeopardy pool, I'll take the somewhat-known vs the unknown just about every time. However, Mark's also right that familiarity with the buzzer is HUGE, and giving a player a second chance with it could come back to bite you. I don't think there is one "right" answer, which is one more reason why this game is so much fun to dissect.