>> AI, as currently being developed, doesn't care. Deep Blue may win, but it will take no joy fron the victory and no pain from setbacks on the way. <<
How do you know that; you are not Deep Blue. Perhaps D.B. simply lacked a way to express it.
Anyhow, the reward-and-punishment system is fairly well understood, partly by research into drug addiction. The agony of defeat may simply be a high-ranked message that backtracks to the behavior trigger "path" that produced the defeat-causing behavior.
If you send a suppressor message back to the origin of given behaviors upon loss or defeat, eventually those nodes responsible for the offending behavior will accumulate "bad carma", sort of like Slashdot. (Still does not stop me from anti-OO trolling :-) Aka "Delta rule" of AI?
Besides, that still does not mean that emotion is needed for real AI. You may be carbon-centric in your thinking here. It might be romantic to think that humans are unique, but don't hold your breadth. No "binary bigotry" here. Lt. Riker won't let you bash Data like that.