Edit - Example: You're on "'Who Wants to Be a Millionaire?" You're in "algorithm mode" for most of the questions, but you're granted one "interaction", via a phone call. On the show, you're allowed to call anybody you want, and if you know to call somebody who's really clever, chances are that interaction will be more powerful than computation. But that's not the general case: the general case would be for you to call a random phone number, and chances are that won't help you - so, in that case, not more powerful.
The purpose of a machine with interactions is not to be more intelligent, it is just to be able to execute a larger body of computations than a machine without interactions would. You can't model operating systems on Turing machines, for example, precisely because they need to interact.
This is from the Wikipedia entry on Alan Turing:
"In June 1938 he obtained his Ph.D. from Princeton; his dissertation introduced the notion of relative computing, where Turing machines are augmented with so-called oracles, allowing a study of problems that cannot be solved by a Turing machine."
I actually think that operating systems are a good example of how interaction can be less powerful than algorithm - the "oracle" in this case might be a user, and the user might be new to computers, so that in this case the result of the interaction might be worse than if the "oracle" were another (non-human) computer, the interaction with which might in turn give a worse result than if you were the "oracle".
You also insist in factoring in intelligence, which is not at all revelant to this discussion. This is about which sets of functions can be executed with which machines.
Oracle machines are capacle of executing all functions that a Turing machine can (if you simply shut off interaction) and also all those that involve interaction. Having been proved that the latter set of functions is larger than the first, we can conclude that oracle machines are more powerful.