Hi Rick.
Whilst I totally understand your reluctance to have the DAW internet enabled it is perfectly safe to have this allowed just for licenses – this is how I have been running since the DAW was delivered (XI-Machines do a great job) and all I ever go online for are licenses and/or dongle software updates.
As far as the iLOK goes, it really is perfectly safe. I know there was an issue not that long ago with an update that basically broke everything but since then it has been plain sailing all the way. I am running an iLOK2, a regular iLOK (the license on it simply does not work if transferred to an iLOK2), a Steinberg eLicenser & 3 Rainbow dongles on a powered hub. I never, ever run Windows Update & all automatic stuff like that is disabled. I have honestly never had an issue with the iLOK2 myself though.
