If your shihan thinks that you're not ready, I guess you'd better take his advise.
He knows your level of knowledge and of your opponent. In my opinion; he is protecting you. Maybe you can try to have a few rounds with that shodan inside the dojo (maybe at 50/60% power).
I'm not sure what that demonstration must be like. Is it a real match or is it a prepared demo (like: "if I hit you here, you must react with a kick there")
OSU
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"Tobi or not tobi" - W. Sheakspeare-san
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