If you were not thrown to the wolves, but allowed to start gently, and if you have been told you have an option about the level of contact, then this sounds like a great school
Of course watching experienced guys spar hard looks scary and daunting - it did to them too when they were watching from where you are now
They have built not only their skills, but their pain resistance and confidence, as they increased the intensity of their journey.
That is the kind of training that actually helps you defend yourself in a real situation. You cant say to an attacker 'I am not used to dealing with this sort of thing, can you go a bit easy on me please'. You can in that class, and you can use it to build yourself to where you are not scared of sparring, but others are wary of sparring you.
Punches hurt, kicks hurt. Training or in public. Welcome to the real world, I suggest you jump in