Wow!
Thanks for all the replies everyone. Everyone's advice is definitely eye-opening.
1) As for the drill putting everything together and donning it in darkness, that's an awesome idea. I'm going to give it a try sometime in the next few days to see how well I do.
2)
You know you messed up spouse knows you messed up and now spouse wants to tell instructor so s/he can tell you that you messed up. - This isn't the case at all... I wasn't out to 'tell' on him... my concern was get the OWI's advice on how to prevent the bad knee-jerk reaction that occurredm because I want to do everything possible to help prevent this from happening somewhere that an injury would more likely occur.
3) He did purge the reg (by blowing hard into it)... he said that he was still "sucking water" even after clearing it twice. I tried breathing off my octo (the same one he had) upsidedown after it was mentioned here that you should be able to, and I didn't have any problems other than bubbles in the face... So I think he simply didn't clear it well enough (?) and a little surprise caused a lot of panic. Not 1000% sure there though.
4) I had no idea that practicing 'unsupervised' was frowned upon. Generally there were instructors popping in and out of the room with the pool to check on everyone using the pool at the time... and our intentions were to practice, practice, practice... to the point that we are 100% comfortable with everything we've been taught. We've spent 25-30 hours in the pool over the past few weeks... A friend who is being certified through another agency/dive shop spent about 6-7 hours total in the pool before going on his OW checkout dives. I just personally feel better that I'd be able to handle a problem that arises than someone who has only been in the water for 1/4 or 1/5 the time I have.... : )
5) We decided not to specifically talk to the instructor about the incident. I did however mention a similar situation about a diver bolting for the top... about what to do, how to tell when you think someone is going to... and what, if anything you should do... Kinda to get a handle on things, make myself feel more comfortable with what I should do if something like this ever happens again... but letting the hubby keep his pride.
I'm also looking into taking (and convincing the hubby to take) a Stress and Rescue course once we gain a little more experience. Something that I think will help in troves.
Thanks again for all the interest, everyone!