I did my ppl out in florida. Training was done summer 2001, and there was no rule about touch and goes, but then went back for 50 hours flying in 2005 and the rule was now in place for students. I thought it was stupid, just put it down as a money making scheme, but then a few days later I took off after a touch and go with landing flaps still out. So I can see the case for and against. Im sure it wont catch on, I fly 737s out of Liverpool now and it would cause havoc if light aircraft had to full stop after each landing- im sure atc just wouldnt allow it for spacing.
I think one of the most important points during the ppl course is to put more and more responsiblity and trust in a student pilot, upto the point where they are capable of being pic. So wheres the sense in saying 'we no longer have faith in you performing a touch and go'?
Take your case to the head of training, get a petition going or something. If its who i think it is then theyre desperate for students anyway so theyll aim to keep the customers!