Ok... I personally feel you have every right to be hurt. And no you are not to senstive, With me if someone said that to me, the mother bear comes out quick! How completely embarrassing this must have been for you.
I would like to know if this trainer has a brain? Or any tact, I mean that is why you are there so he can learn how to do it, and not get discouraged.
I would seek another trainers advise if it was me, or maybe go early the next time to to tell her how much that comment hurt, I am sure you paid good money for your class and you also deserve respect. I think if she is a so called "trainer" she should not be talking to people like that.
So sorry you had to deal with such a nincompoop. Just know we love your Teddy and I am sure he walks beautifully on a leash