I've generally been very lucky with my instructors - mostly high time and therefore confident in their ability to save anything the student does wrong. One of them, who used to run his school/FBO, said that if a potential instructor touched anything on a checkout flight when they weren't supposed to, it was an instant non-hire.
Where I have had a problem is with low time helicopter instructors, who I find are constantly interfering with the controls. I just put up with it, since I only fly them occasionally to stay more-or-less current. And I understand it, because you would never catch ME being a CFI-H! Too easy for your students to kill you.
With the guy you describe, I would have said something along the lines PilotDAR describes. Also, if you keep your own hand on the throttle (good idea during takeoff/landing anyway) it would make it harder for him.