Re: Why don't the Borg use genetic engineering and cloning?
True, but "technology" doesn't necessarily mean only mechanical technology. From the Borg perspective, humanoids are probably just another form of technology - living tech. So I don't see a conflict between Q's statement (assuming it's true - I tend to think it is because of his preference for smugness) and the assimilation process. It's not unlike how the Shadows used telepaths as sentient "cores" for their ships in B5.
"If you think you're brave enough to walk the path of honor, then follow me into the dragon's den."