I don't blame you for being left with a bad taste in your mouth. I would have run out the door! Why?
He's making you feel obligated for a proper fitting. Implied you'd be making - or saving - money if you were fitted and bought more bicycle than you wanted/afforded/needed. It sounds to me like he was trying to make you feel guilty ("I should have left work...") if you didn't hand him a big roll of $100's. And bought what he said (lied) to you, using the line about the $200 to fit you. I'd be fit to be tied.
I swear - a lot of these gold-diggers are climbing out from under the USED CARS! tents and making a b-line for naive cyclists. I've worked in retail sales, but by my own rules. If telling people the truth and truly being an adviser for a potential sale was not what was wanted - then I walked. As a result, I made more sales from return customers than from new. Many of whom became friends. The other venues have long since gone out of business.
Your intuitive instinct was right on the spot. Get your fitting for free. Get a friend with a bicycle a bit smaller than you. Get a tape-measure. Have at! Use search - or Google - to learn how to measure your body and length. This will tell you what will be best. Then go to another bike-shop armed with the data. This won't cost you a dime.
Guys like Machiavelli there give all of us who work in cyclist's interests a big, juicy, black-eye. Don't patronize 'em - send 'em back to their tent with the turned-back odometers on previously submerged Subaru cars.
Ya know? Some people have a built-in moral-compass that tells them to help people and make well-informed decisions. Some people are money-grubbing sociopaths. Don't judge us all by the spectacular idiocy of sociopathic sales-reps. There really are good folk out there who will help you out. Seek them out. You won't feel guilty and write posts on the internet about how conflicted you felt from such an encounter - you'll be too busy riding a wonderful bicycle you were assisted, not brow-beaten, into purchasing with your own hard-owned cash.