How about a mix of 1 and 2?
All passive bonuses are granted on character creation. Some active racial skills are granted on character creation, with others granted as your level increases.
EDIT: You would of course, have to be able to see what your potential future skills are, and when they can be unlocked, even if you can't use them currently. That will help you decide what skills to take.
In my opinion option 3 would require a few things (This is not a criticism or dismissal). First, the branching racial skill tree would be its own thing, and would not use the same points as anything else (Talents, Abilities). Secondly, for a tree to be a good design, there would have to be quite a number of potential bonuses. I also agree that it would add to design and balance headaches.
So I think I prefer Option 1, or as I said above, a mix of options 1 and 2.
Last edited by Stabbey; 11/09/15 03:18 AM.