It's pretty normal with a gym like that.
I don't think your gym owner / head coach is a douche, but it's the only way to make decent money off of having a fight gym, if you dont have superstar fighters.
There are a small circle of guys who are the "fight team". They get the attention and everybody knows who they are, sort of the rockstars of the gym. They go to competitions and have proven their dedication to the sport.
Then there are the guys like you. And sad to say, but you're the sucker in this scenario, the average guy paying money so the gym can run around. And with classes of 40 people, he can't possibly teach every single one of you properly, unless he has several assistant instructors. It's obviously less than ideal for you, but he can't keep his gym running by only having 10 members. And there are too many casuals / hobbyists who isn't good enough to fight, will quit soon anyways or just want to exercise. So they are the ones paying to essentially keep the gym running.
EDIT: I realized that you can make money off having a gym, but it takes way more effort and requires more time on the coach's / coach's experienced students to help with the new people coming in.
This is not to say that it's a good gym or that I condone it. It's not a good environemnt to learn in, but I'm just trying to say from a business stand point why your coach is doing the things he is doing.