As for smug, I worked a long time to divorce myself of ego. I would like to thank Jenna for the advice, I believe your concessions are a brilliant way of giving. As for me assuming that all westerners have a bad attitude, I meant no offense to anyone. Your path is your path, whether you walk crawl, or cartwheel along it is your business. I was told by a friend of mine here, that "kids" are different than they were when I was young. I was merely saying respect is not a sometimes thing, its an all time thing. When I made reference to McDonalds, I was trying to say that in a highly traditional school, training is done in steps. Each step takes you further down the path. The system is set up to teach discipline and the core values associated with dedication to the art. I apologize if I come across as smug, or ego serving, but truly personally I mean anything I post in no way.
P.S. When I served as a deshi I didnt have to chop wood and haul water. I raked and swept, but I received training everyday. Oh and I didnt learn Mugai Ryu in the states, and we have an international ranking system but I still had to have an okuiri and had to earn my menkyo to instruct.
Zealot, something in your original post reminded me of something. You state that students have been there for 2 or 3 months, and expecting X, then they leave when they are disappointed that they aren't getting X.
Perhaps a bit more time needs to be spent on managing the student's expectations, and the way YOU do things...which may be different from how other people do things. As an example, from the Filipino/Indonesian side, my training there has been without any belt ranks. I understand why my instructors have done that, I have my own reasons for appreciating it, and others may have their reasons for disliking it.
I don't know if student handouts would help (I understand you don't teach for money therefore resources may be limited), but perhaps spending a little bit more time enforcing your way of doing things may be of value? It may even be worth pulling aside the younger students in class on a semi-regular basis, congratulate them on whatever milestones they achieved (small or large) and then describing what will come next, and describe the reasons for these steps. At work, I have a young fellow working with me right now at my engineering job that has a very limited technical background, but wants to grow more on the technical side. He has been given tasks to do, and a procedure to follow, which he does quite well.
I have noticed something interesting. When he learns something new, he is more apt to retain it if I tell him some of the "whys"...this is probably no surprise. However, when he is on his own with a procedure, he is more apt to ask a constructive question or notice when something is amiss when I tell him the "whys".
Perhaps you are already doing this, I don't know. But if not, it may open some new understanding for your newer students. It won't solve every problem, nor will it keep everyone from quitting but it could be a start of some improved retention. :asian: