I agree that the deal you are being offered sucks, however, there are some odd views here. I do not believ e that we can compare web design/build/hosting with photography where the IP rightly belongs with the photographer. Perhaps the graphic design of a website has a creative element and, therefore merits IP rights, but html coding? I don't think so. The mantra I subscribe to, is "by all means copy my code, but not my content". Let's face it with so much available to foc, it seems bizarre to claim total ownership.
As for access to client's web sites, I always insist on having ftp access as I like to make sure that the site works properly before signing off. This is particularly important when installing CMS or e-commerce systems where permissions need to be set.
I never have any problem with this- it is after all a matter of trust, and a proper business-like approach. I guess that having being involved at board level for some twenty years and the resultant grey hairs may help in this matter. :-)
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