Before we start pulling out the pitchforks and torches ... let's think for a moment about the absence of details and first-hand information.
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I do believe it would be entirely appropriate for the OP and his wife to go directly to the instructor and voice their concerns/complaints. If those concerns/complaints are not addressed, then I think it would be appropriate to report the instructor's behavior to the State Police.
Looking at this, there are really two viewpoints here:
Instructor's viewpoint:The state class isn't a technique class---students should come into the class knowing how to draw from a holster, aim, and shoot accurately at a target from various (fairly close) distances. (The max distance is 21 feet, so it isn't like the accuracy requirements are particularly onerous.)
They need to be able to do all of the previous in a safe fashion, obeying the standard rules of gun safety. They should come in with the appropriate gear--a firearm, magazines, and a holster and clothing that can conceal it. All of those are required by the qualification--and the course itself is NOT there to teach the required gun handling.
The curriculum is required to include some shooting basics, plus practice---but it really isn't supposed to be a technique course. Students should already know how to shoot.
At some point in time, the State Patrol will be adding me to the list of state CCW instructors (just waiting for their final approval) --- and if a student shows up to my class unable to be safe, or without appropriate equipment, they'll have to come back to another class later.
The state class really is about information---laws, regulations, and requirements. Conflict resolution, understanding the basics of use of force--information to keep yourself from making a mistake and ending up in prison yourself. Previous shooting experience won't really give you any help for this, either--because most of the class isn't about shooting technique. (Hardly any is about shooting technique.)
Most of it is about _when_ you can shoot---and more importantly, when you shouldn't. As such, unless you've already had self-defense and use of force training, pay attention!
Student's viewpoint:Five hours isn't a lot--especially if there was a break for lunch in the middle. Looking at what is required for the state curriculum, I don't see any way to cover all of that plus the range requirement (for 25 people?!) in five hours. I certainly couldn't do it--not and have anyone learn anything.
Covered that quickly, I'm betting that most of it just whizzed by with just barely enough sticking well enough so that people could pass the test. (I'm also betting that there was a lot of "this will be on the test, so remember it!" commentary.)
As for range commentary--it doesn't have to be a commercial range, or really anything more than an open area with safe directions and a backstop. That being said--if it wasn't safe, then that isn't right. The state patrol regs specifically state: "A firing range means a location operated and maintained for public or private shooting sports and designed to keep fired rounds within a berm or backstop." If there wasn't a berm or a backstop, or something similar for safe fire, then there's a problem.
If some people shot and passed the range test without a holster (and thus, not from concealment) then it wasn't a valid range qualification. In addition, if there was only one instructor with more than 5 students on the line at a time, then that is also an issue. State Patrol regs: "Range/practical exercises - 1 instructor to 5 students."
…so like everyone else, I think the OP and the student should contact the instructor and give feedback, and hopefully receive clarification.
If said clarification is insufficient, then contacting the State Patrol and making an official report would be the next step.