So if you touch the output of an Isolation transformer with a voltage tester non of them would appear live...
What's a 'voltage tester'? A multimeter will indicate voltage. A test lamp will indicate voltage. Any two-pole measurement will indicate voltage. The neon in your little screwdriver probably won't, and one day it'll get you shocked.
If you touch both the live and neutral wires the RCD device would not open the circuit either, right? It works only if there is fault one one of the wires as far as I understood.
Correct. An RCD detects an imbalance in current between two or more wires. Should it detect a potentially fatal imbalance, it breaks the circuit. But not until after the current has already passed. There is no limiting of current or reduction in the chance of a shock, merely the duration. If you're unlucky or have a heart condition, you can still die. Their main utility, IMO, is that they practically ensure a cut power cable (which includes an earth, at any rate) will become dead before it becomes deadly.
I think the original poster wanted to isolate his DUT so does a GFI offer that advantage ?
No.