But don't you think he has a point if he's talking about a simple, single-purpose device like an arduino - say - that can't connect to the internet, but allows keyboard entry of plaintext, then encrypts it, sends ciphertext to a PC via audio?
I which case I think there are some advantages in using audio; if the device used wifi / ethernet / USB then you have to trust a lot of code to be exploit free:
- ethernet driver code - wifi chip firmware - kernel network code - USB drivers etc
Whereas if he's written his own simple bytes-to-audio converter in a few hundred lines of code that can be audited, then I can be be more easily convinced that it's not possible for an adversary to remotely install a keylogger or extract keys from my little encryption device.