Same issue.

 I understand from comments above that they are not permanently deleted and can be re-activated.  The issue is that QBO does not give my office manager permission to change the status of Projects.  She cannot even see them in a useable format like I see them.   

I also understand from comments above that she could do it from batch actions.   However, the possibility of remembering that is a possibility when she always inactivates from the customer's edit menu is close to null.  If you can do it through batch actions, we surely should be able to do it from the edit menu.