I would say this was the point where she had offically gone completely insane....but that would imply she was ever sane to begin with.
Desperate, not insane. Konnie Curze is a depressed nihilist who thinks it's either the worst possible thing, or it's a foolish fantasy. IIRC in this scene she's literally begging Papa to tell her her beliefs are correct (it's also why she tortured Vulkan, the goal was to turn her into something like herself).