As much as I agree that the OP has a problem with alcohol (at least from what she wrote she has) I don't think her T's reactions are OK. I'm gonna explained it on SI example if I may. I did SI a lot- not only scars but also other things¨life threatening in long term but they didn't leave scars. I don't want to say what cause I don't want to 'inspire' someone.
Anyway, my T had to made a choice there- he could have argued with me every damn session pushing me to stop (me not being ready for it cause at that time it served as a valid (though damaging) copying mechanism), terminated me or realized that I'm not ready for a change and while still bringing it up from time to time (talking about it if I feel like it and trying to come up with other solutions) letting me be/talking about other things I was prepare to change at that time, validating the even the smallest ones.
I know it must have been hard for him- I looked very ill, moved with difficulties, sometimes it was so bad I couldn't come/ended in a hospital several times (nobody knew why- I was a med student so I knew exactly what I was doing)- but thankfully for me my T was able to still offer me a therapy even under this circumstances so I was gradually able to change it.
I think same could be applied to MA- watching your client wasting away is no piece of cake but you can't force them to eat. Ts can decide whether or not they are able to work with clients like this- it 's their choice to make- but if they decide to stay they should still provide the therapy and be able to respect the client's decision.