Sounds to me like he's a bit of a nutcase! Photography is expensive. But you get what you pay for. We could have paid $70 and got 30 pics on disc but we went with Iris Creations instead. Iris creations was way more costly but there is no substitute for real talent and warmth.
I'd say take the canvas print and go and do a session with a photographer (like Gemma from iris creations if your in Melbourne) who will do right by you and give the nutty photographer some clear feedback about his practices!