Sounds like a good policy to me. Frankly, I prefer for students to use their own equipment - after inspection of course - since that is what they will be diving with. Skills like regulator retrieval, equipment on the bottom and weight system management are best learned to the point of being a muscle memory level activity. Also to be honest - class grade equipment is not always the best or top of the line. Our shop wants the Instructors in the best and most current equipment with the hope that the student will move in the same direction when considering a purchase. But if they show up with their own kit - we are willing to consider its usage.