I'm most keen on option 2 as well, since it would leave the animals, paintings, item frames, etc. intact. Seriously, I was almost as bummed about all my item frames going *poof* nearly as much as I was my horses. Cataloging is hard work!
Plus the Dragon Egg park just wasn't the same.
I've barely used paintings in 1.6, but I know from past worlds that getting the right one in the place you want is a major PITA.