Cruel Happiness?

Yes.

I think a person who his cruel and petty surely satisfies desires. However, these are lower forms of fulfillment, and lower forms of happiness associated with immediate pleasures (vs. long-term pleasures). A well-balanced person - a developed person, would find greater fulfillment in greater desires. In my opinion, many 'cruel' short-term pleasures are 'cheap,' and they get in the way of achieving greater pleasures. For example, imagine a group of 3 friends. When one of the friends is not present, the other two make fun of the missing friend. Then, when they are all together, they pretend that they are all equally friendly, but those who 'cruelly' treated the absent friend have now established a wall that keeps them from being able to make sincere connections with the friend who was left out. So, in the long-run, the greater happiness of having a fulfilling long-term friendship is blocked by an immediate desire of the 'cruel' friend (or friends) to make themselves feel better by making fun of the absent friend.