Well, if "physics package" is a euphemism for a B-O-M-B, an uncontrolled explosion might be more dangerous. As you note NEAR, I think that it wouldn't be difficult at all to land a ion propulsion engine and nudge a potentially dangerous object into a non-dangerous orbit. But you have to have lead time for this to work.
Keep in mind, I'm thinking a B83's "physics package" - we're talking eighty (80) times the power of the bomb that was used in Hiroshima.
At point-blank range on a 1000 meter-wide asteroid - part of it would be vaporized.