Well without getting into value judgement, you seem to be on board with the idea that emotions are a much higher level of abstraction above the cold logic of genetic survival. I'd welcome an emotional appeal in a public policy discussion as much as I'd welcome a javascript based boot loader. There is a time and place for everything, but emotion is given far too much weight.
Altruism is by definition a net negative for the individual, and I agree that it is very likely deeply rooted in our gene pool. But I certainly wouldn't hold it up as any kind of great achievement, especially considering how frequently it is exploited as a weakness by those in power ("think of the children"). I don't know if we'll ever get to the point where it can be considered a vestigial adaptation, in the same way we have unused muscles for controlling the orientation of our ears, but I hope that one day we'll be able to survive without the genetic compulsion to self-sacrifice.
It has been a long time since I gave Ayn Rand any thought, but your characterization seems pretty far off the mark to me. Have you read her books? She hated libertarians, the use of force, and she didn't want to replace altruism - she wanted it gone. Her reasoning is pretty well founded, as history is full of well intended and ill-conceived calls for sacrifice - the road to hell is paved with good intentions, etc. As far as contracts... I'd love for the world to have that level of clarity. That is why the US is such an attractive setting for business vs many other well developed economies (Mexico for instance), businesses hate uncertainty.
I'm mostly taking offense with the characterization of such "feelings" as "not real" or of lesser value than the "pure" thought of rational egoism:
1. If we take altruism as a highly developed extension of egoism, it's worth to consider it an invaluable heuristic trained over thousands of generations to intuitively make good decisions. Where a cold analysis may tell you that giving money to a poor person is wasteful, I'd say that the warm fuzzy feeling we get from giving is an encoding of results gained over millennia of experience.
This also touches another point: I'd suspect that most altruistic behaviors are actually net-negative for the individual but, when practiced by large parts of the population are beneficial for everyone. Here, emotions serve as a prehistoric solution to the tragedy of the commons. It's an idée fixe in some circles, most notably libertarians and the Ayn Rand crowd to replace this with a system of contracts or simply force but that disregards (amongst other things) that almost no idea in psychology has more empirical support than the beneficial effects of helping.
2. If we consider altruism as an emergent behavior, a sort of instinctual moral code, it should be revered as one of the highest achievements of humanity on a level with art or science.