This seems like a pretty good reason to drop them. When you catch somebody misbehaving, and their response is "fine, I'll stop, but it wasn't a problem" then you can't trust them at all.
Indeed. This kind of response is one of the most disrespectful things you can do to another person. "Hey, what are so upset about? Chill, it wasn't a big deal anyway!"
You probably should blame legal, not PR.
In fact, they seem to agree. I loaded the page just now, and "We have thoroughly investigated this technology and do not find any evidence to substantiate security concerns." is no longer present in their statement.
Their statement is still unbelievably condescending and awful (and none of that has any legal bearing that I can see) but they at least removed the part where they outright denied any security problem.