The nice thing about AirBnB is within reason you can run your business how you would like. I do not make up the room every during the guests stay. I put in my house manual that "There is no maid service or supply replenishment during your stay." Some hosts do offer cleaning during guest stays. The advantage to not offering cleaning is that it saves labor and liability of being in the room when guests are there. The main advantage to cleaning during a guest stay is that it allows for a higher daily rate, greater cleanliness and also enables the host to monitor what the guest has in the room without being intrusive.
The legality of holding someone else's passport depends on the laws of your country. In the US where I am, it would be very unusual to ask to hold someone's passport.
The deposit question is probably the most debatable one. First of all AirBnB does not actually hold deposit money from the guest, instead, they authorize (but not charge) the amount of the deposit on the guest's credit card. If the host makes a claim for damages within 24 hours of the guest's departure (and before the next guest has arrived) and AirBnB determines that the claim for damages is valid, AirBnB will charge the card and credit the amount to the host. I make my deposit roughly equal to one day's rate. I have never had to attempt to collect it.