Though Po Kong was a Martial Artist, it definitely didn't mean he was foolish, especially with his upbringing, which made him think of many things in an instant and understand Xin Yun's thoughts.
As for the Top Family, Xin Yun wasn't really afraid. In fact, given the current situation of the Sky-opening Sect, there was absolutely no need to fear anyone. However, not being afraid didn't mean they wouldn't be greatly troubled and annoyed if the Ten Great Families were to unite and suppress them. After all, even if the Sky-opening Sect was strong, they couldn't possibly kill everyone in the world, could they?
Opposing the Ten Great Families at the same time was definitely foolish. It wasn't a matter of fear, but of worth. If it could be avoided, why let it happen?