I agree about the reddit awards, with one notable exception: that award that "highlights" your comment in a border so that other people's eyes are drawn to it. That has uses.
The karma thing only matters to me insomuch as it enables me to post on certain subs that impose limits. Once I hit 500 karma points on any account (yes, I have many active accounts), I stop caring.
However, interestingly enough, if I really like a subreddit and contribute something to it (be it a comment or a post) and it does poorly, it does kinda sting a little. Thankfully, it's easy to learn the "lay of the land" and figure out what "within the rules" things you still must not say in certain subs.