I am a type one diabetic (complication free) with worsening hammer toes. Would it become a major problem if I had neurothapy in my feet?

Yes. With neuropathy pressure areas may develop ulcerations.
Might be. . Hammertoes can cause problems in diabetics with neuropathy, since the weight distribution is shifted and more pressure is placed on smaller areas of your toes. Neuropathy might cause you to hurt one of those over-worked pressure spots without realizing it, causing a callus or a wound. Talk to your podiatrist about surgical and non-surgical options for hammertoes.
It can. As neuropathy might prevent you from feeling breakdown in skin, blisters must be followed by a podiatrist!