It doesn't matter how much you spend on lessons. Some people do not learn as quickly as others. I have to agree that studios should teach their students how to dance and not what to dance. That is one thing I am greatful for. I have learnt how to dance and am able to dance with anyone who can lead. Many of the students where I am now learn choreography, but do not know how to lead the choreography, let alone lead anything outside of the choreography. They dance at high levels, but can nto really "dance".
As far as beginners not dancing anymore because of the better dancers looking down at them, I have seen it both ways. Personally I normally look up to those better than I am, especially when I was a beginner. However the better dancers around me were friendly and always willing to help the newer people. That is not so everywhere. You fun into many people who only stick with their partners and will only dance with people who are their own level at socials. That can be discouraging as a beginner.