I think that I would want to have a service level agreement that is acceptable to everyone before I would give out that much control over the database. For example, you could specify that if the client damages their databases in a way that they can't fix, your response would be limited to restoring it to a backup point of their choosing within a certain timeframe. You might also require them to maintain a specific technical contact for database issues who will be the first contact for their developers, etc. The SLA should spell out the various risks, including loss of data, inherit in having this level of capability.
In general, I'm in favor of giving more control, rather than less, if the client is willing to accept the responsibility. As a person who uses such services, I know that it can definitely improve productivity if I'm allowed to make the changes that need to be made without having to jump through hoops. I'm also willing to accept the risks involved, but I clearly know what the implications are.