Hm, difficult questiom.

Personally, I'm rather for option 1, although option two is very tempting.

For option 1, then, I'd expect a "map-travel" like in the Realms of Arcania series (a similar thing will probably be used with the Drakensang game, too).

When you find a big kettle of crazy, it's best not to stir it.
--Dilbert cartoon

"Interplay.some zombiefied unlife thing going on there" - skavenhorde at RPGWatch