1) i can't remember but i think they ran into it? so unless they run across another one i think they're ok.

2) it's not just the emotions bc even the talky toaster has simulated emotions, it's (for lack of a better word) the existence of kryten's soul, which seems to exist in this ep anyway. if it's all just programming why would either spiritual essence for him? and does that apply to all droids? and if so, is it really ethical to essentially use them as slaves?