This is one inspector that has been standing out in the sun too long. He needs to take a look at NFPA 101 Life Safety Code.
Areas of assemblyof concentrated use allow for 7 sq ft per person which means only 89 would be allowed in your room (based on my really old copy). Not to mention that he has totally missed the boat on what a place of assembly is.
He could have a point about any wiring above a dropped ceiling though.
Tom