The emperor cannot have too much reactivity, because he is a plot device. If you repeatedly tell him that you don't trust him because he is a mind flayer, he will force the vision where he mind thralls Stelmane on you. But then the story continues as usual, even though the emperor would have to be an idiot, and not a mind flayer with genius-level intellect, to not consider the protagonist allying with Orpheus against him. He doesn't even try to turn your companions against you, something that Raphel warns you about, but never actually happens in the game.