There are a few issues in this accident that I found interesting;
The way the student was allowed to conduct the take-off has already been covered. Myself and many other instructors have probably done this on thousands of occasions without incident, with good risk management and vigilance it is no more dangerous than when they enter the circuit later for take-off and landing practice.
The take-off was commenced just as (I assume) the sea breeze was kicking in, so whilst only 1-2 knot of downwind when the conversation about the wind with the tower took place, what was the wind at the time and place of the accident. A C150 has very little performance with 2 pob, throw in a low speed and increasing tail wind gradient and it's not going to like it.
There was no mention that the student "yanked" or "hauled back" on the control, it sounded more like he just kept on raising the nose at a normal rate.
Is 150 fpm a good rate of climb?
The report mentions the instructor applied full power when they realised they were stalled, there is no clarification of whether they confirmed full power or had to add power. The way it reads is as if they added power at this point, if so why on earth would you have less than full power on take-off in a C150.
Finally the stall, use of controls near the stall should be coordinated. The report seems to indicate only aileron use until stall was identified then the use of rudder. The initial roll to the left sounds like it was student induced, the sharp roll right was probably linked to stall. Using aileron only to stop the right roll at that point would have caused sharp adverse yaw and led to the situation the instructor observed, I have seen this many times during stalling in 150/152 where students insist on using aileron only to roll level. By the time he was instigating the rudder the nose had already dropped and rate of descent was beyond recovery.
I've never really seen a training aircraft that has a nasty stalling tendency that was not instigated by poor (or intentional) technique. There are some unforgiving types that will not tolerate much out of balance and a severe wing drop will occur. C150/152s are aircraft that will not forgive poor rudder usage and punish poor aileron use near the stall, unlike a PA28 for example which can suffer much torment before it gives up.