SQL Server 2008 :: Grant User Full Permission Within Schema Scope

The requirements are:
1. the user has read-only permissions to dbo tales.
2. the user can do everything within the rpt schema, which contains all objects analyzing dbo tables.
3. the user does not have any permission outside rpt schema, except permissions in #1.

The current solutions are:
1. grant the user select only on dbo tables.
2. make the user the owner of rpt schema.
3. Grant the user database permission on create table/create procedure/create view/create function.

My question is - in step 3, should I just grant "Alter" database permission to the user? Granting Alter seems to be cleaner and simpler. According to MSDN,

"Alter" confers the ability to change the properties, except ownership, of a particular securable. When granted on a scope, ALTER also bestows the ability to alter, create, or drop any securable that is contained within that scope.