Doh. Referee reports seem to me to be almost exclusively heart-rate boosting reading regardless of what they say. I remember my own annoyance at my own paper this December, when the referee said things like "The entire section 4 is well-known and should be cut down in size" - where section 4 was, basically, my own original results.

Listen to the academics already commenting here. And remember, if your advisor thinks it's good enough, and your external examiners think it's good enought, it's a thesis. The referee judged your paper in relation to that journal - it might get a completely different reception at another journal.

Or for that matter with another referee.

Go at 'em, boy-o!