From recent experience I know that in the UK there are still plenty of hotels, restaurants and shops that will take american cards that aren't set up for chip & pin.
Correct. And not just American cards.
Restaurants and hotels will let you sign the "old-fashioned" way if you do not have a UK issued Chip 'n Pin card.
With restaurant prices in London especially it would be madness to venture out with less than a few hundred pounds in cash. Talk about unsafe.
And waiting for change is always a pain.