She was also embarrassed because the teacher commented on my not touching her during one part of the routine (a sensitive subject)
Please, let's be very honest. Do you not think this is the real issue.
Missing practice for one week is just code and/or perhaps additional justification for her threats to quit.
I would go further and say that her embarrassment at your not touching her during the dance is really your lack of intimacy spilling into to other areas of your relationship.
The intimacy issue is going to have to be dealt with at some point. You have pretty much everything else checked off your list. From here you seem not unable, but unwilling or perhaps fearful to face this final hurtle.
Me 44 She 46 S13 D9 M18 T23 3 years DB'ing Successfully busted