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I think LaMDA and InstructGPT are clearly in the category of "genies that aren't very powerful or intelligent".
I think this article wonderfully illustrates the primary relationship between emotions and epistemic rationality. Namely, that emotions can be downstream of false beliefs. Robin Hanson added in another comment that this relationship can go the other direction, when strong emotions bias us in ways that make us less epistemically rational.
But I think there is also a separate relationship between emotions and instrumental rationality. Namely, that emotions can influence which decisions you make. This includes but is not limited to epistemic bias.
Harry asks Draco to categorize the children of Squib couples as either Wizard, Squib, or Muggle. If a Squib is a non-magical child of a Wizard, how could a Squib couple produce a Squib child? What is the difference between a Squib and Muggle child produced from a Squib couple?