If my Father in Heaven is literally about Unconditional Love, then that means He loves me without conditions. And there is nothing I can do to disappoint Him. Furthermore, I refuse to have faith in an angry & judgmental God who keeps a score card in Heaven, and then uses this to punish me.
Picture a child asking his father to play with him a game of checkers. The father says to the son, "son, I can't play you because I love you so much that I can't bear to beat you, or even to get ahead of you during the course of the game". Do you think the child would be happy? No! The child enjoys the challenge! The child wants to play his father even if he loses. It's the game he wants, not the winning. And it's the spending of quality time with his father, whom he adores, that he desires.
It's the same with life. We want G-d just to love us unconditionally and give us all we need. But before we came down to this world, our souls wanted to play G-d the game called "Life". We wanted the challenge of doing the Mitzvos and beating the evil inclination in a world where G-d is hiding. The score-card of this game is "a good life for eternity"... Yes it's true that G-d loves us so much that he desires to tell us "quit playing this game and let me just give you everything you want!". But we didn't want that. Our soul WANTED G-d to keep that "score-card".
And every time we make a smart move in this game of "Life", G-d smiles and tells us how proud he is!