If I had a room full of people and told them that if they do as I tell them to else I will put them in another room and light them on fire, this would be analogous to the punishment (albeit not for eternity ). But if I told the others that if they said I was great and sung songs about how awesome I was and worshipped me, in exchange for a room full of happiness, wouldn't this sound a bit vain (and maniacal)?
There is absolutely no reason why a god should need people to worship him. The only reason I can possibly think of for an actual god to need worship is that he is an extremely small-minded, vain, self-obsessed narcissist with the mental maturity of a 4-year-old child. What psychotic monster would create beings for the sole purpose of worshipping him?
There is only one reason why gods demand worship. They don't exist. Religious leaders found a way to control people through their beliefs. Religion is the delusion that keeps the followers connected to the way they see the world. They'll fight tooth and nail to keep themselves from being ripped apart from their delusions, so they'll fight tooth and nail to make sure they are following the will of their "God" (Or should I say, the men pretending to speak for him).
Praise of a god is only designed to make sure the "faithful" are staying faithful to the real God: The religious leaders that lie to the public.
G-d was perfect before He created the world, and He will always be perfect. The main reason why He expects us to praise Him is so that we lower our ego and pride, and acknowledge that we are limited beings. This is part of the test that every person must pass before receiving the reward in the World to Come (Heaven).
So, billions of years ago, you create the universe out of nothing with such precision that it continues for those billions of years. You also take your time to let a certain world to be perfect to a human species. You give humans everything out of the gate & they screw it up .... Continuously. You keep helping out humans no matter how many times they tell you they don't believe that you have done all the good in the world & that all the bad things are really a result of humans' bad decisions, yet they blame you for it all.
You are impotent & by that definition, deserve worship. You keep bailing out humans to show your love no matter what they do.
Humans worship money, power, material things ..... & in the end, what do those material things do for them? How long do material things keep us happy, or do we keep pursuing (worshiping) the next material thing to attempt to keep us happy ...... The endless pursuit of material happiness.