Yes, Raine did start going down the wrong tack. There were so many people with magical abilities and were working with the gangs and whatever else that Genis could tell that they were all "dangerous," just like Genis was "dangerous." And he hasn't even met Valdis yet! But there is a look of scepticism when Raine starts down it, but Genis will at least let Raine finish her spiel before he interrupts; he'll give her that much.

It's only when she compares him to Mithos that Genis goes silent. "So wait, you think he's like Mithos but you also consider him to be a friend? Isn't that sort of a contradiction of sorts?" he says. He's not countering what she's saying angrily at all; Genis is in between belief and doubt and trying to find clarity between them. He's not seen any of that in Bakura yet, but at the same time... this is Raine speaking. "Besides, that thing he wants, isn't that something he could only search for in his own world? I mean, if Mithos were to come here tomorrow, he wouldn't be able to revive Martel here."