The bluntness of that ballet instructor is commendable and humane (although not everyone might think so). Ballet is a real grinder, and finding the right school for a dancer is key to their enjoyment of the sport. I've read enough stories online about studio dramas that almost makes figure skating look tame!
There are coaches (in any artistic sport) with a full slate of students - some of whom merely fill a slot in the schedule to maximize profits. If parents are okay with that, so be it.
When parents foot the bill, the transition from talented skater to elite-trained skater is difficult. There's a lot of mistakes that can be made, and coulda-shoulda-woulda thoughts after the fact. It's hard when a skater's needs change, and the coaching needs to change with it. Often, it's an emotional process, which complicates things further.