"I expressed some concern about this and she told me that they had worked out their minimum gas and so she was told it was okay"
What did she think? At this level; divers should be able to plan dives within the bounds of safety and good reasoning. The first thing I would have asked her, is was she OK with this, and why?
I am VERY conservative when it comes to training dives. If I am doing a deco dive I want full backgas, especially with a student in the water. Just too much to go wrong IMO.
I'd be curious to see what Jim Wyatt says about this if he is around. I cannot imagine on the profiles they run down in the Keys; that he would think two back-to-back deco dives on the same trip using the same backgas - even if they were short dives, was a good idea. I'm not sure of the surface interval involved here; but doing two deco dives (even short dives) in a short amount of time is just asking for trouble.
Personally, I would have done the 3rd dive on one trip and concentrated on making the most out of the training opportunity - then run the 4th dive later in the day, or even the next day.
I'll run sidemount classes doing partial fills; and even tec training dives. Not actual deco dives.