I had a very similar thing happen to me, I think before I went solo. Had instructor next to me as well. It also scared me enough to take a few weeks off and reconsider my decision to continue my flight training.
My circumstances were slightly different though. We had to helicopters flying around the airport spraying chemicals for mosquito larvae. Pretty typical here in coastal Australia. I was on final at about 500 when I got an updraft from one of the choppers, which pushed me to high for the approach. I decided to go around. As I was doing so, I got a heap of rotor wash from the other chopper as it had landed to fill up with chemicals. The end result was the same as local flight east suffered, and resulted in the instructor taking the controls and me calling an end to the day.
I think its a bit rough to criticize the instructor, they are there to let you learn. The fact the instructor took control instinctively and sorted it out is testament to his/her skill.