Your puppy is very small and needs frequent feedings. You also should take her to the vet for an exam so that you have someone to call besides this breeder. At least she did assist you, but honestly, a vet is where you need to start taking her.
As for the "P" word, it is definitely something that should be mentioned. My guess is that the person who answered the phone was trying to make you realize just how scary things can be for these tiny pups. It is not always a dreadful thing but a vet should be the one diagnosing health issues. Diarrhea in a tiny pup like yours can be deadly in a very short period of time.
I agree the breeder should have never sold her when she had diarrhea, but what's done is done...moving forward, please find a vet for your puppy! Vetting properly is not cheap but it is a necessary evil.
You really ought to consider purchasing health insurance for her. There are a lot of threads on this forum about insurance. Good luck!