Yes, that's what the argument boiled down to: theory versus reality. Problem was, he was applying his real-world experience to the theory and we had the SIM set up for simple ADF exercises which involved no change of wind or any other nasties. In which case, the theory should have been correct.
(I will add, I already have my NVFR with an ADF endorsement, so I do know the basics.)
My instructor and I get on pretty well - and he does know his stuff (maybe doesn't communicate it as clearly as I'd like at times) - but we do tend to have a few of these "idealogical debates" . . . which aren't always conducive to learning how to fly when it happens in the middle of exercises! We have a good laugh about it when we get back on the ground . . or out of the SIM, as it were in this case.