Was the guy at the LBS a kid? I was talking with one who kept telling me the 21 inch old frame (I am 5'6" with a 29 inch inseam) I had ridden comfortably for years and toured on and commuted on and had adjusted just so was 'too big' for me.
I "get it" that new frame sizes are different but if they don't understand how to fit the classics they should maybe use you as an opportunity to learn something.