Yes, I think it was a shock and I agree he saw her at her worst. (All excellent points about the rough patch in her life that she'd been going through, not to mention the stress of seeing him for the first time in eight years!) It's interesting that in the text the very next thing he says is that, he is over her and ready to marry. It's as if he's been under some kind of spell, which was broken by the shock of seeing her again, wretchedly altered.