I have seen lists such as this before that advise potential martial arts students about what to look for an instructor or a school, and I have seen the debates about the merits of the individual points exhausted. Let's consider this situation from a different view:
How should an instructor deal with a potential student who shows up with such a list of demands?
Put more simply: A student asks, "Show me how not to be bullied." How should the teacher respond?
Do you think you have an answer? What will you do when the student rejects it and insists, "A good teacher could explain it to me in a way that I can understand"?
Your reputation is on the line. Your other students are waiting for your response...