As much as I enjoy fictional, armchair partial-cosmology, this evolution-based explanation of every aspect of humans - intelligence, social behaviour etc, is just so unimaginative. Couldn't evolution itself evolve to a point where it diverges from the conventional structures held to compose evolution?
Besides, if self evolved as a response to cheating, we must explain cheating outside of the concept of self. Why would you cheat if you are not separate as an individual?