The idea behind "Buddy flying" IS to let you take off the training wheels sooner. You WOULD be in full control of the plane and allowed to make mistakes and attempt to make (or make) recoveries. The instructor is there to stop the plane from that one last dive into the ground (or tree). He should give you EVERY opportunity to save the plane yourself and intervene only to save the plane if that is the way you want it. "Buddy flying" can be done at many different levels of assistance. You and the instructor just need to agree at what point he should intervene (or not). He can also coach you and improve your techniques.