Dismissing Freudian thinking as unscientific pseudoscience is exactly what happened, that does not affirm demonic possession as a reasonably plausible explanation for human behaviour. Psychology on the other hand is opening up that doorway, and it ridiculing it is not the same as ridiculing people who believe that outside actors invade and control human behaviour (at least ones that aren't actual parasites that exist in the real world).
Optical illusions are not the same as hallucinations, but the fact that the processing of information is altered chemically validates the idea that the mind is material. Pushing it further into the level of ego death or the K-hole should highlight that there is no duality between conciousness and the material brain; they are one and the same.
Your rebuttal has the implicit assumptions about what constitutes an artificial intelligence and what sort of reward system it may engage in. You assume that an artificial intelligence would be incapable of finding gratification or pleasure - something that drugs do for people. That an artificial intelligence would be a calculator without the capacity for some form of morality is an assumption.
That is important, as the universe doesn't care about you or morality in general. But moral behaviour is advantageous for a social animal. We are wired for it, but when we behave in general there is the acceptance of rules so we can engage with society. They are conditions of entry, if you can't abide by them then the society will exclude you (banishment and incarceration being two examples). That they are subjective does not make them meaningless, that they are not universal does not mean that we should act as we please. I enjoy the benefits of society, I have a general aversion to rape and murdering people on the street and I get along fine. The argument that civil society and good behaviour only exist because of God seems to have the corollary that in the inexistence of God would destroy society and people would have no cause to be good. I very much hope that most God fearing Christians could engage in society without God telling them to be good . Moral codes are the products of societies, they are not a function of the universe, any sentience that wants to engage with others in a "society" will accept and comply by mutually agreed rules of behaviour even though they are not handed down from God.
As for evolving a society tribal structures benefit members, the odds of survival improve by being part of a tribe versus being a loner, the genes that you have will be pretty common among your kin, tribes are composed of related individuals so things that are to the benefit of the tribe are to the benefit of common genetic material. Competition within a tribal structure demands power, that demands intelligence (to rise to the top, to understand the motivations and goings on of others, to get mates) and there is a constant pressure that means the smarter had more kids and that effect was compounded over tens of thousands of years.