Whereas strictly that is true that all non-auto transformers are isolating, when the word "isolation" is used it generally means that there is no electrical connection between the primary and the secondary. In a normal SDS installation sure the transformer isolates, but then the NEC requires that you bond the secondary right back to the primary, so the transformer is no longer doing any isolating at all!
Impedence matching is an interesting property. Many times in electronics it is necessary to connect stuff across an impedence difference. For example, professional audio microphone signals are balanced, approximately 600 ohm signals. To connect that to a high impedence unbalanced input stage you need an impedence changer, and a transformer can do that job. You can also do the job directly in electronics, but there are other properties of a transformer that can make it a desirable solution for this job, including noise supression, particularly of the common mode varienty, ie noise that is equally present on both legs of a balanced circuit.
If I remember correctly, impedence transformation occurs as the square of the turns ratio.