Did you just quote "Men In Black?"
These auditors are exactly the individuals that benefit from pointing out inadequacies in security. I covered the "company laptop" and "USB" issue - if people have physical access to a system, then obviously, it's vulnerable. What does "100% isolated" mean? Controlled using rubber gloves behind a glass window of a clean room? These guys are simply pointing out that you can't make something 100% secure, which is a universal truth. All you can do is make it uneconomical or unrealistic, or at least very difficult. The auditor you heard had a whole lot to say about nothing.
And it's not necessary to begin your post with "uhhh... right."
If all else fails, lower your standards.