Re: Instructors of low rank
When I was a gokyu in one dojo I was asked to teach some classes. Our sensei was yondan, and at gokyu I was the only person who had any kyu or anything other than sensei. It was a NEW dojo, but I also carried with me a judo shodan and several years working as a professional coach in a "performance" (as in, against the clock) sport.
I didn't feel that confident leading Aikido stuff beyond what I thought I was beginning to know, but we were working on ukemi, fundamentals, ukemi, and fundamentals. And more ukemi.
(Sensei also had sankyu in judo and nidan at the time in kendo, and only let me loose on the practice because a) he couldn't make it, and b) I could beat him in judo-style newaza...)
But - it has to be looked at case-by-case. The sensei in your situation must have had his or her reasons. One of which being - you learn so much when you try to teach... Another being - he/she may have seen something in you and it's a test... It may also have been a test of the other students in the dojo to see how they'd react - perhaps some need to pull their necks in a little?
However - the response, as long as you're not doing anything out of the ordinary, should be for the higher ranks to take in what you're working on at THEIR level - not necessarily yours. Basics is still basics - the people who are best at any skill are best at the basics.