I too have a very meticulous teacher. I've definitly had some tough lessons, but in the end, I feel good about it. I want to dance well! In a sense, I feel honored that my instructor respects me enough to ask for such fine details. If he were just expecting me to do the steps without any technique, styling, etc., then I think I would want to find another teacher. But as others have said, it is about what you want.
I totally hear you about getting nervous when dancing with your instructor...I definitly do! I have a lot of respect for him and care about what he thinks. That can't be a bad thing. Good luck, and happy dancing!