Wow that is really absurd! As many people have said get out of there, find another flight school. I'm currently on my solo consolidation, if my instructor/flying club restricted me to doing full stops I'd definitely take my business else where. For an instructor to hop out of that plane for the first time and say off you go means that he trusts you to be able to cope with everything that is needed within the circuit, including the touch and goes. If they can't trust a student to take up the flaps on a touch and go then really that student shouldn't be flying solo.