The ball does not ride up a wedge face, it compresses into it.
Sorry, I should've phrased it better. The wedge compresses the ball and continues in a slightly downward pattern giving it the illusion of the ball riding up the face which is what many people believe happens. Actually, because the wedge is continuing on its downward path it is actually imparting spin similiar to the way an outside to in swing path imparts a slice spin but instead of the face cutting across the ball, the face is cutting down on the ball. Therein is one of golf's opposite affects - hit down to make the ball go up.
I believe that driver grooves are mainly just cosmetic.
I don't know about wedges and irons, though. If a smooth faced iron went further, wouldn't many pros use them. And if they don't have as much trajectory doesn't that prove that grooves affect spin.