Hmmm...can't say I remember the Genii Alliance (but those episodes aren't really my favorites and have me going, 'don't built nuclear bombs with them, Rodney.'). But if the Genii started out as a white peoples and then didn't intermarry because of suspicion. Even with an Alliance, I do think it's a possibility. I mean, they did convince Teyla that they were a shy agrarian society and while she didn't have Rodney's device, she does have a pretty good sense about things and was aware of higher technology. (If memory serves, no one ever called the Wraith magical.) Though I'm beginning to remember why I'm frequently told never to apply logic or try to apply logic to the Stargate universe.
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I'll have to watch for that.