My PhD advisor thinks my progress is poor. How should I proceed?
It is normal this issue makes you upset as it will have a huge impact on your future. Everybody has doubts, and it is good to explore them and not to rush into things wihtout thinking.

First, about your advisor : he seems to be a respectable person (as you say it yourself) so what he is saying needs to be heard.
Maybe you are not meant to do a PhD and it will be better to do a master. You need to ask yourself why a PhD is important for you?, is it mandatory for the professional goals you want to achieve? Are you willing to sacrifice (hobbies for examples) and work more for it?

If you think your advisor doesn't spend enought time with you, you should say it to him and ask him to provide help : by himself or to appoint to you a more senior student.

Final question you should ask yourself and maybe the most important one: besides your advisor, the puplications and other things, do you enjoy studying/working on the content of the PhD?