I don't think taking them to the class would do much..I am not insulting your class, I just don't think any one class could ever convince a beginner that it "works," but that's just my opinion. They probably WOULD just make fun of the attacks.
To tell the truth, I actually partly agree with their point of view--what they see is that in a real attack, things would not necessarily progress the way they do in any single technique that we do--it would only sometimes turn out that way, and only provided uke is acting the way that that technique depends on. So yeah it is staged if done correctly--nage throws IN RESPONSE to the attacking energy from uke, and that motion and intent from uke DETERMINES what techniques can come out. So, when we practice any given technique (non-jiyuwaza), we are staging the scene by giving uke a role to play.