A lot of items have <artifact quality="3"> (or whatever number) tags in itemDB.xml. But they never generate with any random qualities. If the same items are crafted, however, they have random bonuses. Many of the items with this tag aren't craftable, so I assume the tag is supposed to do something in other situations.
Only if the item is generated specifically by the room description. When I added a Fatblade to the starting room in roomDB.xml, it had its random enchantments. But when I found a Clockwork Deflector lying on the ground in a random room, it didn't. (This was in a debug-mode game, but I made sure the level was generated by going down a staircase rather than by the 'p' command).
The behavior of items found on the floor follows some odd rules, and until you really figure out how it works it can appear arbitrary, inconsistent, or buggy. If the item is called by the loot command (either via type="artifact" or by calling for the specific item by name) in a room definition, then the bonuses will be applied in full. (For example, those little rooms that appear on all floor with the tiny island that has a single artifact on it. They spawn items with their artifact quality triggered.) If it's just a randomly placed item that's not called by a room definition, than more often than not the artifact quality lies dormant until you Krong it. I suspect that's all intended behavior, not a bug, but I could be wrong. EDIT: Ninja'd by the OP.