When my students have become more competent I will always take them out in gust or crosswinds higher than they would wish for, the same is for poor weather. I would hate for a student once obtained a PPL to go out and the forecast not be as it should and, that would be the first time they had to deal with the situation.
The students would at the time question their capabilities however, I would not take them up should I feel that they would not manage.
They do sweat and shake but aferwards they are ALL greatful as they recognise the importance of the lesson. THEY CAN DO IT, this they take away and hopefuly will not have to put into practice until they are more experienced.