So, just to be clear, the current proposal is:
Skills: Appraise, Craft (gemcutting), Knowledge (architecture and engineering), Knowledge (dungeoneering), Listen, Search, Sense Motive, Spot?
Feats: Improved Initiative (B) plus 3
#1 Power Attack or Reckless Offense
#2 Endurance
#3 Alertness or Diehard or Skill Focus (Knowledge [dungeoneering])
Now I like Power Attack and Improved Sunder for them. They've got more cause for Improved Sunder than Dao - they've got claws they use to split rock all day, while Dao just have slam attacks.
Alertness doesn't work for me, although I like Endurance. Diehard is tempting, but seems surplus to requirements - unless you fancy it as a bonus feat.
As for SF (dungeoneering) I was thinking they should have a racial bonus on Appraise, Craft, Knowledge and Profession skills related to stone and stonework.
Speaking of which, they need Profession (miner) among their skills. I suggest either cutting Search, Spot and Sense Motive and using the saved points to max it out or swapping Craft (gemcutting) for it. I prefer cutting Spot, since I'm imagining these genie as having poor eyesight, like moles...
So, my proposal is:
Skills: Appraise 9, Craft (gemcutting) 9, Knowledge (architecture and engineering) 9, Knowledge (dungeoneering), Listen 9, Profession (miner) 9, Search 6, Sense Motive 6, Spot 6
Feats: Endurance Improved Initiative (B), Improved Sunder, Power Attack