I agree with your choice for #1. I think the biggest issue new players will have is getting the hive to start the kingdom in the first place. I rarely use hive over swap.hive so even I struggle to remember how to get hive on my account since I so rarely need to. Expanding the payment options would lead to easier onboarding especially if you can find a way to offer paypal over hive.
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For instance, I've got 24 swap.hive being swapped for hive and it's stuck "processing" for over 4 hours. This is preventing me from interacting with the in game market. The ability to use swap.hive in place of hive would be a major improvement.
So, the reason why we are not offering SWAP.HIVE as an option is that we don't want registration and market transactions to fail because of delays in the hive-engine which happens quite frequently.
And we don't want to have custody of people's tokens other than our game tokens, which we control.