MxB

In all the years I've been doing overnights and bringing providers to me... I have never ever gotten a travel demand about needing to be in business class or higher. At most the only requests I got were: time of day, whether to get direct flights vs lay overs, or window vs aisle seating. Hell, even guys who wanted to pick their own flights and be reimbursed for it, never chose business/first class.
So to answer your question(s)...
- No, most guys do not require business class.
- If he doesn't want to compromise, I say move on.
- it might make you seem cheap to this particular provider, but I don't think it makes you cheap for negotiating flights. I mean you are willing to pay his rates otherwise.
If you really want to see this guy and he must have business class, why don't you fly to him?

Porn star, and in my eyes the guy who Rafa passed the torch to, Diego Barros posted this on his public page not too long ago. Guessing they were taken last summer sometime. 
 

Sexy Sebastian Bonnet, vintage Bel Ami