What you are describing is the typical profile of a predator. Luring the victim in and then trying to exert power to get what he wants. Christian's comment should be well taken. Your teacher is speaking with his theoretical head up his sphincter. If a person is bad, "universal/unconditional love" is absurd. It certainly has nothing to do with Aikido. Let me give you an analogy. That would be like saying that I have universal love for that melanoma growing on my skin, so that the love with heal me
It simply needs to be removed, like that predator in your dojo. With that dirt ball, I would suggest a clean separation between C1 & C2!
I frankly think that a group of us should come and train at your school. You can sell spectator tickets in advance. Money raised could help offset the greater costs training at a saner dojo.