It may be a difficult client, but I can also see someone doing this out of curiosity: would it work? In a freelance relationship that is just beginning, there is not much to lose.

Historically computers have made micromanagement easier. Think about company vehicles being tracked by GPS. It also enables managers to manage more people more effectively, have a flatter organisational structure. IT people are doing this to others, there is no reason to expect it wouldn't happen to us :)