I like #2 best. My worst fear and biggest indecision comes about the quilting part - always afraid I'll ruin the top, so I'm the last person to give advice on that.
Another problem I see is how to disengage DSK (Dear Sweet Kitty) so you can sew the blocks together. Looks as if DSK is quite attached to your quilt in progress. Good luck, love the colors, and eagerly awaiting final pictures.