I would recommend terminal server installation over client installation for a very simple reason, easy to maintain, control and upgrade. In such an installation design, your maintenance as well as upgrades will be limited to the terminal severs on which Dynamics GP is installed. For instance, a certain report customization, add-in or chunk files are easily controlled and maintained, imagine you will have to deploy a chunk file over 100+ workstations !
On the other hand, network between the terminal servers and database server can be guaranteed by establishing a reliable "fiber option" connection to limit down the choices of posting corruptions between workstations and database server.
If you were on GP 2013, I would highly recommend the web client design, but that's not one of the available choices with GP 2010.
You could read "Connecting remotely to Dynamics GP, Terminal Server, Citrix etc." article by Rose Business Solution which briefly list the pro's and con's of connection choices
Hope this helps,