Think about it...it's not just you winning when a diplomatic victory is achieved, it's EVERYONE winning.
I think you need to do the thinking.
Here's a visual aid.
Here's a diplomatic victory:

The diplomatic victory condition states:
Form an alliance with all the surviving major races to win a Diplomatic Victory.
Or, form alliances and then eradicate anyone who isn't part of your club.
This means that the MOMENT you (or any player) has an alliance with every player in the current game, they win the diplomatic victory. Eradicating those that aren't part of your alliance eliminates their race, so that you can fulfill the requirement to be allied with everyone easier. If I'm allied with everyone but the Drath, and kill the Drath, I win a Diplomatic Victory.
The Victory Condition explicitly states that in order to win, you must have the alliance with everyone. It is not a team victory. Except in extremely rare cases, ONLY one person wins. Suggesting that everyone in the alliance wins would require the 'final victory' condition to look like this:

Yes, in this case, everyone won, because everyone fulfilled the victory requirement.
However, since only ONE person needs to ally with everyon, the following is *NOT* a diplomatic victory condition for anyone. Even though everyone has a rather significant number of allies and everyone will more or less be at peace, nobody has filled the condition yet.

If the Korx and the Yor made the magenta-colored alliance, then they would BOTH win the Diplomatic victory condition, as they both fulfilled the goal (personally I'd think whoever MADE the alliance would win, but that's minor).

Likewise if the Drengin and the Drath made the magenta alliance, the Drengin would win the Diplomatic victory, but not the Drath.

It's stupid to say 'Everyone wins' because no, not everyone wins. I really don't see why the AI should be exempted from this victory condition.