"Why is giving clients RAW files such a sensitive matter among photographers"
Because i am the artist that has been hired to create something, you are paying me to create and i am not going give away my unfinished work to be manipulated by someone else.
I have read the answers here and obviously there is no consensus. My position is (and it applies to me, make your own decisions), IF I were leonardo da vinci i would not give you a paint by numbers sketch outline of Mona Lisa and say fill in what ever colors you like.
The client is paying for my skills and experience to create my artistic vision of what they are asking for, if they want a raw file, that they can apply whatever their artistic vision is to, then they can produce their own raw file.
My art is my art. If you want my art you pay for my art and you get my art.
two cents inserted.