I agree. originally typed out that very same thing and how I would have fixed it. That's the one thing that I don't like about today's point sparring, which has turned into a game of tag. It removes the reality that we are going to get hit, no matter how good we think we are. It also ignores the reality that not every strike needs to be avoided and not every strike is going to be "the most powerful strike" Block, redirects, and jams can be viewed as different ways that one may be hit. Point sparring takes all of that away and creates fragile practitioners.That tends to happen when you're in a striking art, and you're never really hit.
I would have had those 2 students stand in front of each other and I would tell them to take turns hitting and kicking each other in various places (non vital and not the face). If your partner says you can hit them harder then up the power a tad. This will not only give them an idea of what they should expect to feel. It also, helps to other partner to know how hard to hit and kick. Then I would tell them to buy a decent head gear and mouth piece and let them go at it.