We are in a nice compromise art class at our community center for kids 2-5. The teacher does NOT make or show an example which is for us, enormously helpful. Each child get the same materials, and sometimes the components are premade, like a wooden tray. But the craft focus rather than free-form art is ok with me because dd is so much happier not trying to make hers look like the teacher's. We do more free-form stuff at home - lot of cutting paper and gluing.
A lot of the moms have to try really hard not to interfere, or help, or "improve" but rather to let them go. My interference is usually along the lines of "we need to let the paint dry, so you can use the glue on the decorations - or they will fall off". Which dd is ok with, but my niece is younger and needs to be allowed to keep going. So we glue her pieces again afterwards if we plan on keeping it.
My goal is to head towards a situation where she can select her own materials, too - but until I find that, this is working pretty well.