LT, I too think what it sounds like a challenging but insightful session. He was honest. You were honest. I think he was real with you, even though it wasn't the kind of real you wanted.
I also think it was perfectly fine, even good for him to share about his feelings and how he is affected by you. I think therapy is the only place we could hope to get straightforward, honest, compassionate and sensitive feedback about things like that. I don't see he said anything at all that would warrant you leaving him.