tit-for-tat escalation
I think maybe you nailed it here. Being able to pretend they're doing game theory/mapping out an escalation ladder allows Yud and our friends to feel like they're in the same intellectual lineage as guys like Oppenheimer and Teller, manifesting the same sort of "objective" emotionless rationality. The big difference, you see, is that the AI will think so much faster than us that...!

"They wanted me to build an AI, so I built a shoddy AI casing filled with used pinball machine parts!"