Its great as a player to have options in game and the feel of your choices making or breaking your current plot/goals. But on the other hand, its really hard for the players to know what to do when the DM says "ok, go where you want, do what you want." I think players need some prodding of which direction to go(I know I do) -even if pointing to multiple possible hooks and stories- and are generally perfectly willing to go along with whatever story(s) the DM has planed. The Character/player knowledge gap is usually just way to wide for the players to start things rolling on their own.
It's important for the DM and his story to be able to adapt the adventures to player actions and decisions, but I think its much prefered that he have some general story in mind over make it up as you go. Even the best DM can't come up with answers to all the players whims on demand with the "do what you want" method and still keep it consistantly interresting and cohesive.
So I voted 7.