It (is) implies only one subject, while they (are) implies many. Since the direct object (ferrets) is plural, the latter would be correct.
I can't decipher this 
it rule. Basically the rule would be that 
it cannot be used as an impersonal pronoun (or be the subject of a sentence) without a prior use of a different noun for the subject and that noun must occur within the same sentence. With the exception when 
it refers to time, weather, or distance. 
I keep seeing 
this, but no explanation as to why 
it must refer to time, weather or distance. This leads me to believe 
it has to refer to time, weather, or distance, when used impersonally, but I am having trouble finding a source to clarify and verify this.
Anyway, if 
it can be used impersonally (and be the subject of a sentence when not referring to time, weather,or distance) then you are half right. 
They're is totally correct in the sentence. But  if 
it is referring to the irresponsibility of the ferrets the sentence is be correct both ways.
If, 
it can only refer to time, distance, or weather, when used impersonally, then you are completely right. But as a slang sentence, 
It's ferrets after all would still be a commonly heard type of sentence and would be something used by native speakers to English.
From: 
http://en.wikipedia.org/wiki/It_(pronoun)
The word and term 'it' can be used for either a subject or an object in a sentence and can describe any physical or psychological subject and / or object.
"Everyone got its legs kicked or its feet trodden on in the scramble to get out of the carriage."
Also, this from the book 
Correct Writing Book; Sixth Edition (1995):
Collective Nouns:Collective nouns are singular in form but plural in meaning. These nouns may take either a singular or plural verb: if you are thinking of the group as a unit, use a singular verb. If you are thinking of the individual members of the group use a plural verb.
Examples:The 
crew is striking for higher pay. [The  crew is acting as a unit.]
The 
crew are writing reports of the wreck. [The members of the crew are acting as individuals.]
(p. 147)
Collective Nouns as Antecedents:With 
collective nouns use either a singular or plural pronoun according to the meaning of the sentence.
Examples:The 
team elected Jan as 
its captain. [The team is acting as a unit and therefore requires the singular possessive pronoun 
its.]
The 
team quickly took 
their positions on the field. [Here each member of the team is acting individually.]
(p. 158)
[I wanted to show collective pronouns, because they cause some very odd sounding, yet correct English sentences. Usually such sentences are rephrased like the 
the crew are example could just have read, 
"The crew members are writing reports of the wreck." Which sounds less awkward.]
Impersonal Use of the Personal Pronoun:Remember that pronouns are frequently used impersonally and when so used do not have antecedents. Notice the correct impersonal use of 
it in the statements about 
weather, 
time, and 
distance:
It looks like rain. [Reference to weather.]
It is now twelve o'clock. [Reference to time.]
How far is 
it to the nearest town? [Reference to distance.]
(p. 167)
So,
Ferrets like to live their lives irresponsibly. It's ferrets, after all.I supposes ferrets could
n't be a collective noun. I don't think someone would ever say,"The ferrets is making a home." And, even though they are acting as a unit, the sentence is incorrect. The word 
are would have to be used.
But,
Ferrets like to live their lives irresponsibly. It's ferrets, after all.could be read as:
Ferrets like to live their lives irresponsibly. It's their type of lifestyle, after all.Irresponsibility is the antecedent and noun that 
it is referring to. Irresponsibility is not directly in the first sentence, but can be derived from it. Irresponsibility is a singular noun. Therefore, 
"It's there type of lifestyle, after all." is correct and so are the sentences 
Ferrets like to live their lives irresponsibly. It's ferrets, after all.The sentence could read:
Ferrets like to live their lives irresponsibly. Irresponsibility is their type of lifestyle, after all.Which avoids ambiguity from 
It's.
Search something like 
it's cars on Google. Plenty of results and the same singular/plural arrangement (singular 
it with plural 
cars). (You can even search "it's cars, after all".)
So the second sentence is either correct or slang. But even as slang it's a common occurrence form native speakers. 
I post this, because I rarely speak a second language out of fear of being laughed at how miserable I am at it. So, when I see a "correction" to a sentence without the qualifier that the sentence could still be correct (or at least commonly used, although grammatically incorrect) I get really irked. It's a great way to deter people from using a second language.