Hi Tash, keep at it and you will feel better. Look back on the reasons behind you starting this journey they should still be able to act as a motivator to you.
The woman was possibly meaning you should exercise for flexibility rather than anything to do with weightloss, just a thought, but I agree with Kate ignore the morons and move on. They know nothing about what you are doing or how much it takes to get there.
I didn't get people noticing I had lost weight until I had lost over 10kgs and many not until I had lost 15kgs then the comments started. Even now I have people look at me funny and go 'there's something different about you, have you lost weight?' Uh yeah, quite a bit actually and there eyes pop when I say around 25kgs. See, people have no idea. LOL It's even harder for you to see it yourself as you are looking every day and the change is gradual.
Best of luck and don't give up mate.