Agree with the points. While billing hourly & tracking time on my own I tend to keep going back to the timer application to pause or start for every small occasion, depending whether I am working on the project or doing something else, even if its for a minute or two, coz distractions are omni-present & I can not work on something straight for 60 minutes at a time. That actually increases my anxiety.
So I much prefer to bill per work/project basis as a whole.
One thing regarding ethics, sometimes a client will want to 'copy' a feature they saw on another website, including the visual feature as well. That makes me uncomfortable, I try to make variations of it, although I have never denied work for this reason. May be next time I will atleast object strongly when its a blatant copy.